British American Tobacco Fined $110 Million for Violating Federal Laws
British American Tobacco (BAT) has been heavily penalized for breaching federal competition and consumer protection regulations. Former FCCPC (Federal Competition and Consumer Protection Commission) CEO Adamu Abdullahi confirmed that a $110 million fine has been paid to the federal government and the FCCPC.
FCCPC Confirms Payment of the Fine
According to a report by The New Telegraph Nigeria on July 24. The FCCPC announced that it has received the $110 million payment from British American Tobacco for violations of multiple federal laws and regulations in 2023.
The fine follows a detailed investigation into BAT’s operations. Where the FCCPC determined that the company had breached key provisions under the Federal Competition and Consumer Protection Act (FCCPA 2020) and related administrative rules.
Legal Basis for the Penalty
The FCCPC investigation cited violations of:
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Section 155, Rule 11 of the FCCPA 2020 Administrative Fines Provisions on “Violation of Consumer Rights.”
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Rule 4.2 of the 2021 FCCPC Rules and Procedures for Investigative Cooperation and Assistance.
Under these provisions, British American Tobacco and its related entities were required to pay a total of $110 million as an administrative fine, consistent with the Commission’s enforcement framework.
Leadership Transition and Enforcement Record
The fine payment was confirmed by Acting Executive Vice Chairman and CEO Adamu Abdullahi during his farewell press conference. Abdullahi assumed the role in January 2024, succeeding Babatunde Irukera, and is set to be replaced by Mr. EVC Olatunji Bello.
Adamu clarified that the payment was made in two installments in January and March 2023. British American Tobacco companies are based in the United Kingdom and the United States, respectively. Payments were processed through the Central Bank of Nigeria (CBN) at the official exchange rate, with 40% allocated to the Federal Government and 60% to the FCCPC.
Broader Impact and Enforcement Initiatives
During his tenure, Abdullahi was recognized for strengthening market competition and consumer protection through the enforcement of the FCCPA. His administration focused on merger reviews, investigations, and consumer education, especially amid rising food prices.
The FCCPC, under his leadership, implemented measures to:
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Enhance market transparency and address irregularities.
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Monitor and regulate digital lending to ensure compliance with legal and ethical lending practices.
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Collaborate with the Civil Aviation Authority to investigate and address airfare hikes.
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Penalize discriminatory practices by major digital companies such as Meta and WhatsApp.
Commitment to Economic Growth and Consumer Rights
Adamu Abdullahi commended the Nigerian government’s economic initiatives. Encouraging wealthy individuals to invest in the local economy to stimulate employment and preserve foreign exchange.
His leadership at the FCCPC reinforced the Commission’s role as a regulatory authority committed to fair competition, consumer rights, and ethical corporate behavior across industries, including the tobacco sector.
