The Competition and Consumer Protection Tribunal in Abuja on Monday rejected the terms of settlement between the Nigerian Bottling Company Limited (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC), while upholding the Commission’s N190 million penalty against NBC for misleading packaging of its Coke products, among other issues.
The Tribunal’s three-member panel, led by Thomas Okosun, delivered the ruling and judgement in an appeal filed by NBC.
Recall that the FCCPC had alleged that Coca-Cola Nigeria Ltd and NBC misled consumers by describing the “Original Taste, Less Sugar” variant of Coca-Cola as identical in formulation to the “Original Taste” variant.
NBC subsequently approached the Tribunal, requesting that it set aside the Commission’s N190 million fine, citing multiple grounds.
Legal Dispute Between NBC and FCCPC
Nairametrics previously reported that NBC admitted before the Tribunal that the FCCPC obtained evidence from the company confirming that the mislabeling of the zero-sugar variant of Limca Lime-Lemon resulted from a production error at one of its eight factories—specifically, the Abuja plant.
In its amended appeal, exclusively obtained by Nairametrics, NBC stated that “the mislabeling was accidental, not deliberate.”
NBC, which holds the Coca-Cola bottling franchise, also disputed the FCCPC’s claims that Coca-Cola Nigeria Ltd (CNL) and NBC used misleading trade descriptions and unfair marketing tactics in labeling their Coke products, including the “Original Taste” and “Less Sugar” variants.
- NBC’s legal team, led by Oluseye Opasanya (SAN), in appeal number CCPT/APP/6/2024 dated September 5, 2024, argued that the Commission’s findings were baseless and beyond its statutory powers.
- Opasanya contended that to prove deliberate intent, the FCCPC should have obtained evidence from the company’s remaining seven factories—Maiduguri, Asejire, Ikeja, Owerri, Challawa, Port Harcourt, and Benin—to determine whether the same mislabeling occurred elsewhere.
- In response, FCCPC counsel Abimbola Ojenike urged the Tribunal to affirm that the Commission has the statutory authority to issue and enforce orders for corporate or consumer contraventions.
Ojenike maintained that evidence presented during the investigation indicated that Coca-Cola and NBC violated Sections 17(2), 116, 123(1)(a–c), and 124(1)(a) of the Federal Competition and Consumer Protection Act (FCCPA).
He asked the Tribunal to dismiss NBC’s appeal for lack of merit and uphold the FCCPC’s orders.
Tribunal’s Judgment
During Monday’s judgment proceedings, NBC’s counsel, O. Ogunride, informed the court that a settlement had been reached with the FCCPC.
“We are pleased to inform the Tribunal that the parties have agreed to terms of settlement, and we urge the court to adopt the settlement as its consent judgment,” she said.
- Ojenike confirmed that NBC’s legal team informed him on April 23, 2025, of the settlement. He added that the FCCPC’s Legal Director, Akoji Achimugu, had indeed reached a settlement with the appellant.
- However, in its ruling, the Tribunal stated that NBC’s filing terms of settlement after judgment had been reserved, and after parties had adopted their final written addresses, amounted to an attempt to arrest judgment, an action not recognized in Nigerian law.
“The notion of arrest of judgment is unknown to Nigerian law,” the Tribunal ruled.
- Chairman Okosun stated that entering into a settlement after judgment was reserved exceeded the powers of the FCCPC.
“This undermines the FCCPC’s role as a regulator,” Okosun said.
The Tribunal further held that the FCCPC’s acceptance of a settlement after final address conflicted with its public regulatory mandate.
“The Tribunal cannot indulge in private compromises; we must uphold our constitutional duty to the public,” he said.
- The judge also criticized the nature of the settlement, noting that the FCCPC had suddenly reversed its position by declaring “there is no penalty.”
- Consequently, the Tribunal refused the application to adopt the settlement terms.
In delivering its final verdict, the Tribunal affirmed that the FCCPC’s five-year investigation, findings, and penalties were lawful and aligned with the Nigerian Constitution.
The Tribunal ruled that NBC’s actions were clearly misleading and violated Nigerian law.
- On the legality of the N190 million fine, Okosun held that the FCCPC’s administrative penalty was consistent with the FCCPA and the 1999 Constitution (as amended).
The Tribunal dismissed NBC’s appeal for lacking merit and affirmed the fine.
The Tribunal ordered NBC to pay the N190 million penalty within 60 days of the judgment.
What You Should Know
Nairametrics reports that Coca-Cola Nigeria Limited (CCNL) and the FCCPC are also before the Tribunal over the legality of an additional N186,666,666.67 penalty related to CCNL’s labeling and marketing practices.
On December 11, 2024, the FCCPC agreed not to take regulatory or enforcement action against NBC and Coca-Cola Nigeria Ltd pending the resolution of their respective appeals.
