The Federal Government, acting through the Federal Competition and Consumer Protection Commission (FCCPC), has imposed a fine of $110 million on British American Tobacco (BAT) and its affiliated companies.

The penalty is attributed to alleged violations of the Federal Competition and Consumer Protection Act, National Tobacco Control Act, and various legal instruments, as stated by the FCCPC in a press release on Wednesday.

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The FCCPC further outlined that BAT is required to adhere to compliance and monitoring measures for a 24-month period, engage in mandatory public health and tobacco control advocacy, and provide written assurances to the commission.

In exchange for fulfilling these obligations under the Consent Order, the commission withdrew pending criminal charges against BAT Nigeria and an employee related to obstructing the commission’s search warrant execution and initial lack of cooperation in the investigation.

The FCCPC’s decision follows an active investigation initiated on August 28, 2020, into British American Tobacco Nigeria Limited and affiliated companies based on credible information and intelligence received.

The commission conducted a search and seizure operation at BAT locations and a service provider’s location on January 25, 2021, obtaining substantial evidence from forensic analysis of electronic communications and other sources.

The investigation involved additional procedures such as proffers, hearings, transcripts of sworn testimonies, and ongoing analysis of evidence, revealing multiple violations of the FCCPA and other laws.

BAT Parties sought cooperation under the Commission’s Cooperation/Assistance Rules & Procedure, 2021, resulting in potential benefits, including reduced penalties and prosecutorial discretion.

The FCCPC emphasized that the imposed penalties were carefully considered, taking into account the record, representations from BAT Parties, and correspondence.

The verdict dictates a penalty of $110,000,000, in accordance with relevant regulations and rules.

The commission reiterated its commitment to promoting fair market practices and safeguarding consumer interests, emphasizing the detrimental effects of a distorted market on economic growth and shared prosperity.

The Executive Vice Chairman of FCCPC, Babatunde Irukera, underscored the need for businesses to be held accountable and face consequences for their actions.

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Irukera revealed that the commission generated N56 billion in 2023, mainly from penalties, as Internally Generated Revenue, emphasizing the role of consequence management in maintaining market stability.

The External Affairs Director of BAT, Odiri Erewa-Meggison, was not immediately available for comment at the time of filing this report.