Tribunal Dismisses Coca-Cola Settlement, Upholds N186m Penalty
The Competition and Consumer Protection Tribunal has rejected settlement terms between Coca-Cola Nigeria Limited (CCNL) and the Federal Competition and Consumer Protection Commission (FCCPC), maintaining the original ₦186 million penalty for misleading product labeling.
In a ruling delivered on April 30, 2025, the three-member tribunal panel, headed by Thomas Okosu, dismissed the settlement agreement that would have withdrawn the Commission’s penalty against CCNL.
CCNL had challenged the FCCPC’s ₦186 million fine related to allegedly deceptive labeling practices for its “Original Taste” and “Less Sugar” product variants in Nigeria.
“Our discussions focused on expanding economic cooperation through improved trade, reduced tariffs, and increased investment,” Tuggar stated.
The FCCPC had previously determined that CCNL violated Section 116(3) of the FCCPA by using misleading trade descriptions, directing the company to pay the penalty by September 6, 2024.
CCNL’s legal team, led by Professor Gbolahan Elias (SAN), had requested the tribunal to nullify the FCCPC’s orders, citing procedural concerns including denial of fair hearing, and noting that the National Agency for Food and Drug Administration and Control (NAFDAC) had approved the company’s products.
The FCCPC, represented by counsel Abimbola Ojenike, countered with 13 grounds of opposition, maintaining that Coca-Cola had received fair treatment throughout the investigation process.
During the April 30 proceedings, CCNL’s counsel, G. Abubakar, informed the tribunal that both parties had reached a settlement after the March 18 hearing, with the FCCPC issuing a consent order dated April 24, 2025.
“I must sincerely apologize to the tribunal for the trouble of writing the judgment,” he said.
He noted that the FCCPC had issued the consent order pursuant to Section 149 of the FCCPA Act, 2018.
“Both the appellant and the respondent (FCCPC) also filed terms of settlement dated April 24, 2025,” he added, stating that the notices were filed with the tribunal on April 29, 2025.
FCCPC’s lawyer confirmed receiving these documents and the Commission’s intent regarding the settlement.
However, in his ruling, Okosu determined that the settlement terms were legally insufficient and potentially contrary to the public interest.
“The notice of settlement contains arguments irrelevant to the instant case,” he said, noting that they referenced an associated matter.
The tribunal characterized the settlement as an apparent attempt to “arrest” its judgment, particularly following its recent ruling against Nigerian Bottling Company Limited (NBC), which holds the Coca-Cola bottling franchise.
“These terms of settlement are not supported by law, nor are they in the public interest,” the tribunal stated, describing the development as “troubling.”
The judge questioned why the FCCPC had withdrawn the original ₦186 million penalty and replaced it with a ₦198 million reimbursement to the Commission without explanation, especially since the settlement was reached on a “no-fault basis,” despite the established violations.
“The stubbornness in the filings by the parties is grave,” the judge stated, as he dismissed the terms of settlement submitted by the FCCPC and CCNL.
In its final judgment, the tribunal affirmed that the FCCPC had properly imposed its findings and the ₦186 million penalty on CCNL, determining that, contrary to the company’s claims, it had received a fair hearing during the Commission’s five-year investigation.
The tribunal upheld the FCCPC’s position that Coca-Cola misled Nigerian consumers through deceptive trade descriptions, regardless of NAFDAC approval, and ordered the company to pay the original ₦186 million penalty within 60 days.
The FCCPC had previously assured the tribunal it would not take regulatory action against CCNL pending the appeal’s outcome. On April 28, 2025, the tribunal had ordered Nigerian Bottling Company (NBC) to pay a similar ₦190 million penalty for mislabeling violations.
