The Competition and Consumer Protection Tribunal (CCPT) in Abuja delivered a decisive judgment on Monday, rejecting a proposed settlement between Nigerian Bottling Company Limited (NBC) and the Federal Competition and Consumer Protection Commission (FCCPC). Instead, the Tribunal upheld the Commission’s ₦190 million fine against NBC for misleading labeling practices on its Coca-Cola products.

A three-member panel, led by Thomas Okosun, issued the ruling while hearing NBC’s appeal against the fine. The judgment has sparked significant interest across Nigeria’s business and consumer rights communities.

Background: NBC’s Legal Battle with the FCCPC

The controversy stems from the FCCPC’s accusation that NBC and Coca-Cola Nigeria Ltd misled consumers by promoting the “Original Taste, Less Sugar” variant of Coca-Cola as identical to the “Original Taste” version, despite differences in formulation.

NBC challenged the ₦190 million administrative fine, arguing it was unwarranted. In its amended appeal—exclusively obtained by Nairametrics—NBC admitted that the mislabeling of its Limca Lime-Lemon zero-sugar variant resulted from a production error at its Abuja plant. The company insisted, however, that the mistake was accidental and not a deliberate act of consumer deception.

Represented by Senior Advocate of Nigeria (SAN) Oluseye Opasanya, NBC contended that the FCCPC lacked sufficient grounds to impose the hefty penalty. The legal team further argued that to prove willful misconduct, the FCCPC should have extended its investigation to NBC’s other seven factories across Nigeria, including Maiduguri, Asejire, Ikeja, Owerri, Challawa, Port Harcourt, and Benin.

FCCPC Defends Its Position

In response, the FCCPC’s counsel, Abimbola Ojenike, maintained that the Commission acted well within its statutory powers. Ojenike emphasized that NBC and Coca-Cola Nigeria Ltd breached critical provisions of the Federal Competition and Consumer Protection Act (FCCPA), notably Sections 17(2), 116, 123(1)(a–c), and 124(1)(a).

Ojenike urged the Tribunal to dismiss NBC’s appeal, arguing that the evidence presented during the five-year investigation was overwhelming and demonstrated clear consumer deception.

Settlement Attempt and Tribunal’s Rejection

During Monday’s proceedings, NBC’s counsel, O. Ogunride, informed the Tribunal that NBC and the FCCPC had reached a settlement agreement. She urged the court to adopt the terms as a consent judgment.

Ojenike confirmed being notified of the settlement on April 23, 2025, and that the FCCPC’s Legal Director, Akoji Achimugu, had signed off on the agreement.

However, the Tribunal rejected the proposed settlement, stating that introducing settlement terms after final written addresses had been adopted—and after judgment had been reserved—amounted to an attempt to “arrest” judgment. Chairman Thomas Okosun firmly stated that such practice is alien to Nigerian law.

“The notion of arrest of judgment is unknown to Nigerian law,” Okosun declared. He stressed that regulatory bodies like the FCCPC must uphold public interest and cannot privately compromise regulatory outcomes after trial proceedings have concluded.

Okosun further criticized the FCCPC’s sudden reversal by agreeing that no penalty should apply, calling it a move that undermined the Commission’s credibility and regulatory authority.

Final Verdict: NBC Must Pay ₦190 Million Fine

In its final ruling, the Tribunal found that NBC’s actions had clearly misled consumers, thereby violating Nigerian consumer protection laws. It affirmed that the FCCPC’s investigations and sanctions were lawful and in full compliance with both the FCCPA and the 1999 Constitution (as amended).

Specifically, the Tribunal ruled that the ₦190 million fine was appropriate and within the FCCPC’s authority. NBC’s appeal was dismissed for lack of merit, and the Tribunal ordered the company to pay the fine within 60 days from the date of judgment.

Broader Implications and Ongoing Cases

This case is not NBC’s only entanglement with the FCCPC. Nairametrics reports that Coca-Cola Nigeria Limited (CCNL) is also facing a separate ₦186,666,666.67 penalty over its labeling and marketing practices.

On December 11, 2024, the FCCPC agreed to suspend any regulatory or enforcement actions against NBC and CCNL pending the outcome of their respective appeals.

The Tribunal’s latest decision signals a firm stance in favor of consumer rights and sends a strong warning to companies engaging in misleading marketing practices. As regulatory scrutiny intensifies, businesses operating in Nigeria’s fast-moving consumer goods sector may now face stricter compliance demands and stiffer penalties for violations.