Nigeria: British American Tobacco Faces $110 Million Fine in Nigeria for Violations, FCCPC Announces

The Nigerian federal government has disclosed that British American Tobacco (BAT), Nigeria Limited, and its affiliated entities will be fined $110 million over alleged infringements, according to a statement by the Federal Competition & Consumer Protection Commission (FCCPC) on Wednesday.

The FCCPC revealed that BAT and its related entities are obligated to pay the penalty following a prolonged infringement investigation by the Commission. In compliance with a Consent Order, the Commission withdrew pending criminal charges against BAT Nigeria (BATN) and at least one employee related to an attempt to obstruct the investigation.

The investigation began on August 28, 2020, when the Commission initiated an active inquiry into British American Tobacco Nigeria Limited and other affiliated companies (BAT Parties) based on credible information about infringements. The FCCPC obtained an Order and Warrant from the Federal High Court for simultaneous searches and seizures at multiple BAT Parties’ locations and a service provider’s site on January 25, 2021.

The Commission collected substantial evidence from forensic analysis of electronic communications, search outcomes, and information obtained during the investigation. After careful consideration of evidence, representations, and the overall conduct of BAT Parties, the FCCPC concluded the investigation with the mutual execution of a Consent Order and Notice.

Under the terms of the Consent Order:

1. Penalty Payment: BAT Parties are to pay a penalty of $110,000,000 under Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations, 2020, and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigative Cooperation/Assistance Rules and Procedures, 2021.
2. Compliance and Monitoring: BAT Parties will be subject to compliance and monitoring by the Commission for 24 months to ensure behavioral and business practices align with prevailing competition laws/regulations and tobacco control efforts.
3. Advocacy and Mitigation: Mandatory public health and tobacco control advocacy compliant with legislation, serving as mitigation for evidence of undermining national tobacco control policies.
4. Written Assurances: BAT Parties must provide Written Assurances to the Commission as required under Section 153 of the FCCPA.

In exchange for BAT Parties fulfilling their obligations, the Commission withdrew criminal charges related to obstruction and lack of cooperation during the investigation. The FCCPC emphasized the importance of BAT Parties modifying their practices to align with competition laws, regulations, and tobacco control initiatives.