FCCPC fines British American Tobacco $110m for violating Act

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  • Investors lose N139.34bn as NGX-ASI declines by 0.34%

The Federal Competition and Consumer Protection Commission has secured a $110 million enforcement action against the British American Tobacco Nigeria Limited and other affiliated companies (BAT Parties).

The Commission announced this on Wednesday in a statement released on their X page (formerly known as Twitter).

The report stated that in 2023, the Commission came to a final resolution with British American Tobacco Marketing (Nigeria) Limited (BATMN), British American Tobacco Plc and British American Tobacco (Holdings) Limited with respect to a range of infringements of the Federal Competition and Consumer Protection Act, National Tobacco Control Act and sundry legal instruments.

On August 28, 2020, the Commission launched an active investigation into BATMN.

This decision was made because the Commission was satisfied that a number of reliable intelligence reports and pieces of information were sufficient to warrant a more thorough investigation into specific acts by, for, and on behalf of BAT Parties.

The statement read in part, “Upon satisfying the Federal High Court that there was probable cause and sufficient evidence to exercise advanced statutory regulatory/investigatory tools, the court issued an Order and Warrant of Search and Seizure.

“In furtherance, and pursuant to the Order and Warrant, the Commission on January 25, 2021 executed simultaneous and contemporaneous searches and seizures at multiple BAT Parties locations and a location of a service provider.

“The Commission gathered, received and procured substantial evidence from forensic analysis of electronic communications and other information/data obtained during the search, as well as other evidence procured during, and after the search from other legitimate sources.

“Additional investigation, including proffers, hearings, transcripts of sworn testimonies, and continuing analysis of evidence established and supported multiple violations of the FCCPA and other enactments.

“During the investigation and in furtherance of mutual engagements between the Commission and BAT Parties, BAT Parties in writing sought, and the Commission accepted BAT Parties into cooperation under the Commission’s Cooperation/Assistance Rules & Procedure, 2021 (CARP).

“The Cooperation/Assistance Framework (CAF) provides for benefits such as possible reduced monetary penalties (Rule 4.1); waiver of the application of the Commission’s Administrative Penalties Regulations 2020 (Rule 4.2); as well as prosecutorial discretion, particularly Rules 5.1 and 5.3 (subject to compliance with Rules 3 and 5.4).

“Upon full consideration of the record, BAT Parties’ additional articulation, representations and correspondence; totality of evidence procured, violations established under law, BAT Parties’ entry into, and conduct in cooperation and assistance under the Commission’s CAF; the Commission closed the investigation by the Commission and BAT Parties’ mutual execution of a Consent Order and Notice with both parties agreeing:

“That BAT Parties shall pay a penalty of $110,000,000 (One Hundred and Ten Million Dollars) under and pursuant to Sections 155 of the FCCPA, Clause 11 of the Federal Competition and Consumer Protection Commission’s Administrative Penalties Regulations2020 and Clause 4.2 of the Federal Competition and Consumer Protection Commission’s Investigative Cooperation/Assistance Rules and Procedures, 2021;

“That BAT Parties’ shall be subject a compliance and monitoring under the supervision of the Commission for a period of 24 months to ensure appropriate behavioural and business practices modification to be more consistent with compliance with prevailing competition laws/regulations; and tobacco control efforts”

Investors lose N139.34bn as NGX-ASI declines by 0.34%

Meanwhile, the Nigerian equities market resumed from the Christmas holiday in negative territory closing down by 254.63 basis points.

The market on Wednesday extended the previous session’s negative trend as the benchmark index, the Nigerian Exchange Limited All-Share Index dipped by 34basis points to close at 73,768.64 basis points, compared to the previous day’s loss of 0.36 percent which closed at 74,023.27 basis points.

Consequently, the year-to-date gain of the ASI slipped to 43.94 percent, as the market capitalization of listed equities suffered a decline of 0.34 percent translating to N139.34 billion in Naira terms to close at N40.37 trillion.

Interestingly, the negative market breadth was reported despite the Exchange recording more gainers (40) than losers (21) as losses in industrial heavyweight, DANGCEM, STANBIC, DANGSUGAR which went down by 2.19 percent, 6.01 percent 1.31 percent respectively drove the negative trend, offsetting the gains in MTNN, ZENITHBANK, GTCO which appreciated by 0.40 percent, 0.26 percent and 0.50 percent each.

Meanwhile, major sell-offs were observed in stocks such as UACN, DEAPCAP, CAVERTON, ROYALEX and TANTALIZER, as their respective share prices dropped by 10.00 percent, 7.25 percent, 6.59 percent, 6.25 percent and 6.12 percent.

Trading activity showed further improvement as the total deals and traded volume increased by 40.55 percent and 2.27 percent to 8,901 trades and 432.91 million units, whilst the traded value declined by 21.99 percent to N12.94 billion.

Sector-wise, investor sentiment was positive, with the Insurance index leading gainers with a 3.06 percent increase, followed by the Oil/Gas and Banking indexes with mild gains of 0.24 percent and 0.17 percent, respectively. However, the Consumer and Industrial Goods sectors experienced declines of 0.15 percent and 1.10 percent due to sell-offs.

At the conclusion of the trading session, JAIZBANK emerged as the most traded security by volume with 35.38 million units worth N58.74 million, changing hands in 203 trades, while GEREGU led in traded value at N6.06 billion.