BAT to pay $110 million to Nigerian government over anti-competitive violations

British American Tobacco (BAT) has agreed to pay a $110 million fine to the Nigerian government over violations of the Federal Competition and Consumer Protection Act and the National Tobacco Control Act.

The Federal Competition and Consumer Protection Commission (FCCPC) said in a statement that the $110 million penalty imposed on BAT followed an investigation into a series of anti-competitive practices.

These included abuse of dominance, attempts to undermine competitors, penalizing retailers for offering equal product display opportunities, and conducting product promotions in violation of regulations.

“The Commission initiated an active investigation into BAT on August 28, 2020, after determining that a body of credible information and intelligence was sufficient to justify a broader and deeper inquiry into certain conduct by BAT, on behalf of BAT, and for the benefit of BAT,” the FCCPC said.

The FCCPC said the Federal High Court affirmed its position that there was sufficient evidence and adequate justification to deploy advanced statutory regulatory and investigative tools against BAT.

“Through forensic analysis of electronic communications and other information/data obtained during and after the search, as well as additional evidence lawfully obtained from other sources, the Commission collected, received, and acquired substantial evidence,” the FCCPC said.

Following the conclusion of the investigation, BAT was ordered to pay $110 million and will undergo 24 months of compliance oversight and monitoring under the FCCPC.

The FCCPC said the sanctions are intended to ensure appropriate changes in conduct and business practices so that they better align with current competition regulations and tobacco control compliance efforts.

“In addition, BAT will provide the FCCPC with written assurances, as required under Section 153 of the FCCPA.”