The Competition and Consumer Protection Tribunal has rejected the terms of settlement proposed by Nigerian Bottling Company Limited (NBC) and Federal Competition and Consumer Protection Commission (FCCPC).
In a ruling delivered on Monday, the tribunal upheld the FCCPC’s decision to impose a ₦190 million fine on NBC for misleading packaging practices related to its Coca-Cola products.
The three-member panel, chaired by Presiding Judge Thomas Okosun, dismissed NBC’s request for the settlement agreement to be adopted as a judgment, describing the move as “an attempt to arrest judgment.”
During the hearing, NBC’s counsel, O. Ogunride, informed the tribunal that both parties had reached an agreement and sought its endorsement as a consent judgment.
FCCPC’s representative, Abimbola Ojenike, confirmed that the terms of settlement had been finalized, citing the involvement of the commission’s legal director, Akoji Achimugu.
However, Justice Okosun pointed out that the settlement was filed only after the tribunal had reserved judgment following the conclusion of final written arguments.
He stressed that such post-judgment settlements fall outside the statutory authority of the FCCPC and risk undermining its role as a regulatory body.
The judge added, “The tribunal cannot indulge in private compromises; we must uphold our constitutional duty to the public.”
Okosun also criticised FCCPC for reversing its earlier regulatory stance by agreeing to terms that waived penalties despite previously establishing violations.
The tribunal then rejected NBC’s application to adopt the proposed settlement terms.
It upheld FCCPC’s five-year investigation, findings, and the imposed penalties as consistent with Nigerian constitution, adding that NBC’s conduct was misleading and in violation of Nigerian law.
It ruled that the ₦190 million fine was lawful under the Federal Competition and Consumer Protection Act (FCCPA) and the 1999 Constitution (as amended).
The tribunal dismissed NBC’s appeal for lack of merit and ordered the company to remit the N190 million fine within 60 days of the judgment.
Before this, FCCPC had on 1 August, accused Coca-Cola and NBC of misleading consumers through unfair marketing tactics.
Although Coca-Cola argued that its product labelling was clear and compliant with regulations, the FCCPC maintained that the packaging misled consumers.
NBC later admitted during tribunal proceedings that the mislabelling of the “Zero Sugar Limca Lime-Lemon” variant was caused by a production error at its Abuja plant. However, the company insisted that the mistake was unintentional.
Represented by senior lawyer Oluseye Opasanya, NBC filed an appeal (CCPT/APP/6/2024) on September 5, 2024, contesting the FCCPC’s findings and fine as exceeding its legal authority. In response, FCCP’s counsel defended the commission’s enforcement powers, urging the tribunal to uphold the fine.
