Coca-Cola Nigeria fined ₦190 million as tribunal rejects post-judgment settlement over misleading packaging

In a landmark ruling that reinforces corporate accountability, the Competition and Consumer Protection Tribunal has upheld a ₦190 million fine against Nigerian Bottling Company Limited (NBC), the bottler of Coca-Cola products in Nigeria, over misleading packaging practices.

The tribunal also rejected a proposed post-judgment settlement between NBC and the Federal Competition and Consumer Protection Commission (FCCPC), calling it an “attempt to arrest judgment.”

On Monday, April 28, a three-member panel led by Justice Thomas Okosun dismissed NBC’s request to adopt a private settlement as a judgment. NBC’s legal team claimed to have reached a deal with the FCCPC to waive the penalty, but the tribunal wasn’t having it.

Justice Okosun declared that such a move was not recognized under Nigerian law, stating:

“The notion of arrest of judgment is unknown to Nigerian law. The tribunal cannot be a party to private compromises that undermine regulatory oversight.”

The case traces back to an August 2024 FCCPC investigation, which found that NBC had misled consumers through the mislabeling of its Limca Lime-Lemon Zero Sugar drink. Though the company attributed the issue to a production error at its Abuja plant, the FCCPC concluded that it amounted to false and misleading representation, violating the Federal Competition and Consumer Protection Act (FCCPA).

NBC contested the penalty, arguing that:

The labeling issue was unintentional

The packaging complied with Nigerian regulatory standards

The FCCPC was overstepping its authority

However, the tribunal ruled that NBC’s appeal lacked merit and affirmed that the ₦190 million penalty was lawful and proportionate.

The ruling also aimed at the FCCPC for backtracking on its original enforcement position. The commission had previously recommended the fine, but later supported NBC’s bid to settle and waive the penalty.

Justice Okosun called this reversal “inconsistent” with the commission’s mandate:

“Regulators cannot undermine their public responsibility by entering post-judgment settlements that contradict their own findings.”

The tribunal directed NBC to pay the ₦190 million fine within 60 days, reaffirming the findings from the FCCPC’s five-year investigation.