The Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja has dismissed a proposed settlement agreement between the Nigerian Bottling Company (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC), instead upholding the Commission’s ₦190 million fine against NBC for misleading labeling on Coca-Cola products.
A three-member panel led by Justice Thomas Okosun delivered the ruling on Monday, affirming the FCCPC’s findings following a five-year investigation into deceptive packaging practices by NBC and its partner, Coca-Cola Nigeria Limited (CCNL).
Tribunal Rejects Settlement After Final Addresses
NBC had attempted to enter a settlement agreement with the FCCPC after both parties had concluded their final written arguments and judgment was reserved. NBC’s counsel, O. Ogunride, informed the Tribunal that terms had been agreed upon and sought to have them adopted as a consent judgment.
The FCCPC’s legal representative, Abimbola Ojenike, acknowledged the agreement, confirming that the Commission’s legal director had reached terms with NBC. However, the Tribunal ruled that submitting a settlement at that stage amounted to an attempt to “arrest judgment”—a concept it declared “unknown to Nigerian law.”
“The Tribunal cannot indulge in private compromises; we must uphold our constitutional duty to the public,” said Justice Okosun.
The panel also criticized the FCCPC for reversing its regulatory position by endorsing a post-judgment settlement that waived the imposed penalty, calling it a breach of the Commission’s public mandate.
NBC Found Guilty of Consumer Misrepresentation
The FCCPC had originally fined NBC ₦190 million over the mislabeling of its “Original Taste, Less Sugar” Coca-Cola variant, which the Commission said was falsely advertised as having the same formulation as the “Original Taste” version. NBC also admitted to a labeling error on its Limca Zero Sugar product, citing a production mistake at its Abuja factory.
NBC argued that the mislabeling was accidental and sought to nullify the fine. Its legal team, led by senior advocate Oluseye Opasanya, claimed the FCCPC acted beyond its powers and failed to provide evidence from NBC’s other seven factories.
However, the Tribunal dismissed NBC’s appeal, finding that the company violated Sections 17(2), 116, 123(1)(a–c), and 124(1)(a) of the Federal Competition and Consumer Protection Act.
“NBC’s actions were misleading and inconsistent with Nigerian law,” Okosun ruled.
The Tribunal upheld the legality of the ₦190 million administrative penalty, noting it complied with both the FCCPA and the 1999 Constitution.
Penalty Deadline and Broader Implications
NBC has been given 60 days from the date of judgment to pay the ₦190 million fine.
Meanwhile, Coca-Cola Nigeria Limited (CCNL) is still facing a related case before the Tribunal over an additional ₦186.6 million penalty tied to its labeling and marketing activities. Both CCNL and NBC had previously secured a temporary reprieve from enforcement actions pending the outcomes of their respective appeals.
