The Competition and Consumer Protection Tribunal rejected a proposed settlement between Nigeria Bottle Company Limited (NBC) (also known as Coca-Cola Nigeria Limited) and the Federal Competition and Consumer Protection Commission (FCCPC), while insisting on a 190 million fine for companies that mislead packaging.
In a judgment filed on Monday, April 28, a three-member panel ruled by Chairman Judge Thomas Okosun dismissed NBC’s application to adopt a settlement clause as a judgment and described it as “an attempt to arrest the sentence.” NBC’s attorney O. Ogunride has informed the court of settlement reached with the FCCPC to request it as a consent to the judgment. FCCPC representative Abimbola Ojenike confirmed the existence of the settlement, noting that the discussion had been completed with the Commission’s Legal Director Akoji Achimugu.
However, the court noted that the settlement clause was submitted after the retention of the judgment, and both parties made the final written argument. Okosun ruled that “the concept of unknown judgments on Nigerian law”, he stressed that the concept of reaching a settlement at this stage exceeded the statutory authority of the FCCPC and undermined its role as a regulator. He further criticized the FCCPC’s acceptance of the post-verdict solution, saying it was inconsistent with the committee’s regulatory obligations. The court stressed its constitutional obligations to the public and asserted that it could not make private compromises between the parties.
The panel also criticized the sudden shift from its early stance, noting that the proposed solution declared “no fines”, which was related to the findings of the Commission directly related to the Commission’s investigation. Therefore, the court refused to settle and continued to make a final judgment.
The court insists on the FCCPC’s five-year investigation, findings and fines, ruling that NBC’s actions constitute misleading practices that violate Nigerian law. It affirms that the 190 million administrative fine is consistent with the Federal Competition and Consumer Protection Act (FCCPA) and the 1999 Constitution (Amendment). NBC’s appeal was dismissed for lack of merit and the company was ordered to pay a fine within 60 days.
The case stems from an August 2024 FCCPC announcement accusing Coca-Cola and NBC of engaging in unfair marketing strategies and misleading consumers. NBC has questioned the penalty, believing its packaging provides clear information that meets national regulatory requirements. The company later admitted that the label of its zero sugar limca lime-lime-lemon variant was caused by production errors at its Abuja plant.
In its amended appeal, NBC insisted that the false label was unintentional and held that the FCCPC’s conclusions were unfounded and beyond its statutory powers. However, the FCCPC defends its mandate to enforce corporate and consumer protection standards and urges the court to dismiss NBC’s appeal. The court finally ruled in favor of the FCCPC, thus strengthening the regulatory responsibility for the consumer protection landscape.
