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Tag: Nigeria

  • BAT Nigeria Fined for Dominance Abuse

    BAT Nigeria Fined for Dominance Abuse

    Image: alexlmx

    British American Tobacco Nigeria has been fined $110 million fine following allegations of market dominance abuse and infringement of public health regulations, reports Reuters.

    The Federal Competition & Consumer Protection Commission (FCCPC) said BAT had also penalized retailers for providing equal platforms for its competitors’ products.

    The fine, which is not eligible for appeal, is the highest ever levied by the Nigerian competition commission.

    The FCCPC started investigating BAT in 2020 and obtained a federal court order to search multiple BAT sites and those of service providers for evidence used in a forensic analysis.

    The competition watchdog will monitor BAT for 24 months to ensure appropriate behavior and business practice consistent with prevailing competition laws and tobacco control efforts, the FCCPC wrote on X.

    “In exchange for BAT parties fulfilling their obligations under the consent order, the commission withdrew pending criminal charges against BAT Nigeria and at least one employee with respect to obstructing the commission,” the FCCPC wrote.

  • Grants Under Scrutiny

    Grants Under Scrutiny

    Image: Piotr Pawinski

    A corporate accountability group is urging Nigeria to investigate the Export Expansion Grant (EEG) awarded to tobacco companies by previous governments, reports the Daily Trust.

    The EEG is a post-shipment incentive to encourage indigenous companies to expand the volume and value of their exports.

    The Corporate Accountability and Public Participation Africa (CAPPA) made its call on Dec. 1, after the chairman of the Presidential Committee on Tax Reforms and Fiscal policy suggested that Nigeria’s administration of tax waivers fell short in terms of prudence and transparency.

    “We demand a full and transparent inquiry into these shady waivers that have ripped the country of its revenues,” CAPPA Executive Director Akinbode Oluwafemi was quoted as saying. “More so, we are concerned about the benefits awarded to the tobacco industry under the Export Expansion Grant Scheme, and other untoward agreements which insult every Nigerian striving for a healthier and more equitable society’.’

  • BAT Nigeria Recognized as Top Exporter

    BAT Nigeria Recognized as Top Exporter

    Photo: eyegelb

    The Nigerian Export Promotion Council (NEPC) recognized BAT Nigeria as a top contributor to non-oil exports to African markets, reports Business Day.

    NEPC issues the award based on the pre-shipment inspection reports by the non-oil exporters, according to Ezra Yakusak, executive director and CEO of NEPC.

    BAT Nigeria exports to 14 countries in West Africa and Central Africa, generating more than $500 million in revenue. BAT Nigeria is one of the country’s top five non-oil exporters each month and generates and repatriates over $110 million in foreign exchange annually. The company employs, directly and indirectly, more than 350,000 Nigerians.

    “The Nigerian Export Promotion Council’s recognition of the volume of our exports to African markets is a testament to BAT’s contribution to the region’s economic growth and development,” said Odiri Erewa-Meggison, external affairs director at BAT West and Central Africa. “We have been involved with Nigeria as well as the West and Central Africa region. We remain committed to advancing the non-oil sector in Nigeria as we create ‘A Better Tomorrow.’”

    Non-oil exports accounted for 11.32 percent of 2021 exports in Nigeria.

  • Nigeria Raises Tobacco Taxes

    Nigeria Raises Tobacco Taxes

    Photo: Richard Darko

    The Nigerian government has enacted a new tax regime this month, reports ICIR Nigeria

    On June 1, the ad valorem tax rate has increased to 30 percent from 10 percent. In addition, the government raised the excise rate on cigarettes to NGN84 ($0.20) from NGN58 per pack of 20 sticks. The excise tax is set to increase further to NGN94 per pack in 2023 and NGN104 per pack in 2024.

    Shisha tobacco, which is currently taxed at NGN3,000 per liter and NGN1,000 per kg will increase yearly by NGN500.

    “This pro-health tax is an effective public health control measure against behavioral risk factors as it can reduce demand and consumption of tobacco products,” said Minister of State for Health Olorunimbe Mamora.

    “It will also prompt tobacco users to switch spending their resources on tobacco products to healthy alternatives such as education, health and others.”

    In compliance with the National Tobacco Act (2015) and Regulations (2019), the government has also commenced screening and issuing operational licenses to qualifying tobacco businesses. 

    The new licensing guideline requires strict adherence to regulations requiring graphic health warnings on tobacco product packaging.

    According to Mamora, about 4.5 million Nigerians 15 years and older use tobacco products, and about 3.1 million are current smokers.