Tuesday, April 29, 2025 - The Competition and Consumer Protection Tribunal has rejected a proposed settlement between the Nigerian Bottling Company Limited (NBC), also known as Coca-Cola Nigeria Limited, and the Federal Competition and Consumer Protection Commission (FCCPC), while upholding a ₦190 million fine imposed on the company for misleading packaging.
In a judgment delivered on Monday, April 28, a three-member
panel led by presiding judge Thomas Okosun dismissed NBC’s application to adopt
the settlement terms as judgment, describing it as an "attempt to arrest
judgment." NBC’s counsel, O. Ogunride, had informed the tribunal of a
settlement agreement reached with the FCCPC, requesting its adoption as a
consent judgment. The FCCPC’s representative, Abimbola Ojenike, confirmed the
existence of the settlement, stating that discussions had been finalised with
Akoji Achimugu, the commission’s legal director.
However, the tribunal pointed out that the terms of
settlement were filed after judgment had been reserved and both parties had
submitted their final written arguments. Okosun ruled that "the notion of
arrest of judgment is unknown to Nigerian law," stressing that entering a
settlement at this stage exceeded the FCCPC’s statutory authority and
undermined its role as a regulator. He further criticised the FCCPC’s
acceptance of the post-judgment settlement, saying it conflicted with the
commission’s regulatory obligations. The tribunal emphasized its constitutional
duty to the public, asserting that it could not engage in private compromises
between parties.
The panel also criticised the FCCPC’s sudden shift from its
earlier position, noting that the proposed settlement declared “there is no
penalty,” directly contradicting the commission’s findings from its
investigation. Consequently, the tribunal rejected the settlement and proceeded
to deliver its final judgment.
Upholding the FCCPC’s five-year investigation, findings, and
imposed penalties, the tribunal ruled that NBC’s conduct constituted misleading
practices in violation of Nigerian law. It affirmed that the ₦190 million
administrative penalty was consistent with the Federal Competition and Consumer
Protection Act (FCCPA) and the 1999 Constitution (as amended). NBC’s appeal was
dismissed for lack of merit, and the company was ordered to pay the fine within
60 days.
The case stemmed from an August 2024 announcement by the
FCCPC accusing Coca-Cola and NBC of engaging in unfair marketing tactics and
misleading consumers. NBC had contested the penalty, arguing that its packaging
provided clear information compliant with national regulatory requirements. The
company later acknowledged that mislabeling of its zero-sugar Limca Lime-Lemon
variant resulted from a production error at its Abuja facility.
In its revised appeal, NBC maintained that the mislabelling
was unintentional and argued that the FCCPC’s conclusions were unfounded and
beyond its statutory powers. However, the FCCPC defended its mandate to enforce
corporate and consumer protection standards and urged the tribunal to dismiss
NBC’s appeal. The tribunal ultimately ruled in favour of the FCCPC, reinforcing
regulatory accountability in the consumer protection landscape.
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