British American Tobacco (BAT) was fined $110 million by Nigeria’s competition commission on Wednesday, the watchdog said, in response to claims that it had abused its market dominance and violated public health laws.
The maker of Dunhill and Lucky Strike cigarettes, according to the Federal Competition and Consumer Protection Commission (FCCPC), has also fined merchants for not giving their rivals’ goods similar footing.
Aaron Shardey, a spokesman for BAT, directed reporters to the agency’s 2023 half-year annual report, which verified the FCCPC inquiry and fine.
The fine is the biggest the Nigerian Competition Commission has ever assessed. According to FCCPC Chief Executive Babatunde Irukera, who spoke with reporters is a “consent order,” which is like a plea deal and cannot be challenged.
“In the resolution of an investigation over a broad range of anticompetitive conduct, including abuse of dominance, seeking to frustrate competitors, and infringement of public health control regulations, British American Tobacco and FCCPC entered into a consent order including a penalty of $110 million,” the competition agency stated on the social media site X.
A federal court order was obtained by the FCCPC to examine various BAT sites and service provider locations for evidence relevant to a forensic examination. The FCCPC stated that it began an inquiry into BAT and related entities in 2020.
The statement went on to say that more research and evidence analysis revealed several infractions of competition regulations.
To guarantee proper behavior and business practices in line with current competition laws and tobacco control initiatives, the FCCPC will oversee BAT for 24 months, according to the watchdog.
“In exchange for BAT parties fulfilling their obligations under the consent order, the commission withdrew pending criminal charges against BAT Nigeria and at least one employee for obstructing the commission,” the FCCPC stated.
