The Competition and Consumer Protection Tribunal has dismissed the consent order and terms of settlement between Coca-Cola Nigeria Limited (CCNL) and the Federal Competition and Consumer Protection Commission (FCCPC), reinstating the N186 million mislabeling penalty initially imposed on the company.
The ruling was delivered on April 30, 2025, by a three-member panel of the Tribunal led by Thomas Okosu, following FCCPC’s withdrawal of the penalty over allegations of deceptive trade descriptions.
CCNL had appealed the FCCPC’s N186 million penalty over its labeling and marketing practices in Nigeria. The Commission previously accused Coca-Cola Nigeria Ltd and its affiliate of misleading consumers with trade descriptions such as “Original Taste” and “Less Sugar,” violating Section 116(3) of the Federal Competition and Consumer Protection Act (FCCPA).
Following a supplementary order, the FCCPC directed Coca-Cola to pay N186,666,666.67 by September 6, 2024.
In response, CCNL’s legal team, led by Professor Gbolahan Elias (SAN), sought to nullify the Commission’s order, citing a lack of fair hearing, jurisdiction issues, and the fact that the products in question had received NAFDAC approval.
However, FCCPC counsel Abimbola Ojenike countered with 13 grounds of opposition, arguing that CCNL had been given ample opportunity for a fair hearing through written submissions, investigative interviews, and consultative meetings.
At the resumed hearing, CCNL’s counsel, G. Abubakar, informed the tribunal that both parties had resumed settlement talks after the March 18, 2025 hearing. He apologized for the timing, stating, “I must sincerely apologize to the tribunal for the trouble of writing the judgment.”
He explained that a consent order and terms of settlement dated April 24, 2025, had been filed with the tribunal on April 29. FCCPC’s counsel confirmed receipt and the Commission’s intent to proceed with the settlement as communicated by its Director of Legal Services, A.W. Achimugu.
However, Tribunal Chairman Okosu found the settlement legally flawed and inconsistent with the matter at hand, stating that the documents referenced irrelevant proceedings and did not meet the standards of public interest or legality.
“This appears to be an attempt to arrest the tribunal’s judgment, particularly following our recent ruling against Nigerian Bottling Company Limited,” Okosu said, referencing a similar case in which the Coca-Cola bottler was fined N190 million.
He criticized the decision to remove the N186 million penalty and replace it with a N198 million reimbursement without sufficient justification, noting, “The stubbornness in the filings by the parties is grave.”
The tribunal dismissed the terms of settlement and ruled that the FCCPC’s initial penalty against CCNL stands. It held that the Commission had followed due process and granted CCNL a fair hearing during its five-year investigation.
The panel further upheld the FCCPC’s finding that Coca-Cola misled Nigerian consumers through deceptive product labeling, even if the products were approved by NAFDAC.
Accordingly, the tribunal ordered Coca-Cola Nigeria Ltd to pay the N186 million penalty within 60 days.
This ruling follows a similar judgment on April 28, 2025, in which the tribunal directed Nigerian Bottling Company Ltd to pay N190 million to the FCCPC for similar mislabeling violations.
