Competition and Consumer Protection Tribunal has rejected a proposed settlement between the Nigerian Bottling Company Limited (NBC), also known as Coca-Cola Nigeria Limited, and the Federal Competition and Consumer Protection Commission (FCCPC), while upholding a ₦190 million fine imposed on the company for misleading packaging.

In a judgment delivered on Monday, April 28, a three-member panel led by presiding judge Thomas Okosun dismissed NBC’s application to adopt the settlement terms as judgment, describing it as an “attempt to arrest judgment.” NBC’s counsel, O. Ogunride, had informed the tribunal of a settlement agreement reached with the FCCPC, requesting its adoption as a consent judgment.

The FCCPC’s representative, Abimbola Ojenike, confirmed the existence of the settlement, stating that discussions had been finalised with Akoji Achimugu, the commission’s legal director.

However, the tribunal pointed out that the terms of settlement were filed after judgment had been reserved and both parties had submitted their final written arguments. Okosun ruled that “the notion of arrest of judgment is unknown to Nigerian law,” stressing that entering a settlement at this stage exceeded the FCCPC’s statutory authority and undermined its role as a regulator.

He further criticised the FCCPC’s acceptance of the post-judgment settlement, saying it conflicted with the commission’s regulatory obligations. The tribunal emphasized its constitutional duty to the public, asserting that it could not engage in private compromises between parties.

The panel also criticised the FCCPC’s sudden shift from its earlier position, noting that the proposed settlement declared “there is no penalty,” directly contradicting the commission’s findings from its investigation. Consequently, the tribunal rejected the settlement and proceeded to deliver its final judgment.

Upholding the FCCPC’s five-year investigation, findings, and imposed penalties, the tribunal ruled that NBC’s conduct constituted misleading practices in violation of Nigerian law.

It affirmed that the ₦190 million administrative penalty was consistent with the Federal Competition and Consumer Protection Act (FCCPA) and the 1999 Constitution (as amended). NBC’s appeal was dismissed for lack of merit, and the company was ordered to pay the fine within 60 days.

The case stemmed from an August 2024 announcement by the FCCPC accusing Coca-Cola and NBC of engaging in unfair marketing tactics and misleading consumers. NBC had contested the penalty, arguing that its packaging provided clear information compliant with national regulatory requirements.

The company later acknowledged that mislabeling of its zero-sugar Limca Lime-Lemon variant resulted from a production error at its Abuja facility.

In its revised appeal, NBC maintained that the mislabelling was unintentional and argued that the FCCPC’s conclusions were unfounded and beyond its statutory powers. However, the FCCPC defended its mandate to enforce corporate and consumer protection standards and urged the tribunal to dismiss NBC’s appeal.

The tribunal ultimately ruled in favour of the FCCPC, reinforcing regulatory accountability in the consumer protection landscape.