The Competition and Consumer Protection Tribunal in Abuja on Monday rejected the proposed 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 fine against NBC for misleading the public through the packaging of its Coke products.
The three-member panel, led by Thomas Okosun, delivered the ruling in an appeal filed by NBC, seeking to overturn the penalty. The dispute arose after the FCCPC accused Coca-Cola Nigeria Ltd and NBC of misleading consumers by suggesting that the “Original Taste, Less Sugar” variant of Coca-Cola was identical in formulation to the “Original Taste” version.
NBC had approached the Tribunal seeking to set aside the fine, citing multiple grounds. However, during proceedings, NBC admitted that a production error at its Abuja factory led to the mislabeling of the zero-sugar variant of Limca Lime-Lemon. The company maintained that the error was accidental and not intentional.
NBC, which bottles Coca-Cola products in Nigeria, further contested the FCCPC’s claims of using misleading trade descriptions and unfair marketing tactics. NBC’s legal team, led by Senior Advocate of Nigeria Oluseye Opasanya, argued that the Commission’s findings were unfounded and beyond its statutory powers. They contended that the FCCPC failed to investigate NBC’s other factories across the country to establish if the same labeling errors occurred elsewhere.
In response, FCCPC’s counsel, Abimbola Ojenike, urged the Tribunal to uphold the Commission’s authority to enforce penalties where consumer protection laws are breached. He pointed out that evidence gathered during the investigation demonstrated violations of Sections 17(2), 116, 123(1)(a–c), and 124(1)(a) of the Federal Competition and Consumer Protection Act (FCCPA).
During Monday’s proceedings, NBC’s counsel, O. Ogunride, informed the Tribunal that the company and the FCCPC had reached a settlement and requested that the Tribunal adopt the settlement as its consent judgment. FCCPC counsel confirmed the settlement agreement but noted it was reached after parties had already adopted their final written addresses.
However, the Tribunal ruled that filing a settlement after judgment had been reserved amounted to an attempt to arrest judgment — a practice not recognized under Nigerian law. Chairman Okosun emphasized that the settlement undermined the FCCPC’s regulatory authority and the Tribunal’s constitutional responsibility to the public. He criticized the reversal of the FCCPC’s earlier position, especially where the settlement suggested there was no longer any penalty.
Consequently, the Tribunal rejected the settlement application, declaring that the Commission’s five-year investigation, findings, and imposed penalty were lawful and aligned with the Nigerian Constitution. The Tribunal concluded that NBC’s actions misled consumers and breached Nigerian law.
In its final decision, the Tribunal dismissed NBC’s appeal for lacking merit and ordered the company to pay the N190 million fine within 60 days.
Meanwhile, a separate dispute involving Coca-Cola Nigeria Ltd and the FCCPC is also before the Tribunal, concerning the legality of an additional N186,666,666.67 penalty over labeling and marketing practices. Pending the outcome of the appeals, the FCCPC has agreed not to initiate further regulatory or enforcement action.
