TobaccoReporter logo

Tag: Nigeria

  • BAT Nigeria Celebrates Factory Anniversary

    BAT Nigeria Celebrates Factory Anniversary

    From left to right: Chief Kola Karim, chairman of the BAT Nigeria (BATN) advisory board; Odiri Erewa-Meggison, director, external affairs for BAT’s West, and Central Africa business; and Yarub Al-Bahrani, managing director at BAT Nigeria and West and Central Africa. (Photo: BAT Nigeria)

    British American Tobacco Nigeria is celebrating the 20th anniversary of its Ibadan factory. Established in 2003, the Ibadan factory has been a cornerstone of BAT Nigeria’s operations in West and Central Africa, enabling exports to 11 countries in the West and Central Africa region, and recently exporting to the U.S. 

    “Two decades ago, we embarked on a journey to establish a world-class manufacturing facility in Nigeria, and today, we are proud to celebrate the Ibadan factory as a shining example of our commitment to excellence and sustainability in Nigeria,” said Yarub Al-Bahrani, managing director at BAT Nigeria and West and Central Africa.

    “The factory has played a pivotal role in our success, contributing significantly to the Nigerian economy, creating employment opportunities across the value chain, and promoting environmental stewardship”, he added.

    The Ibadan factory has implemented a comprehensive environmental management system, incorporating stringent measures to reduce its carbon footprint. According to BAT, these efforts have resulted in significant reductions in energy consumption, water usage and waste generation.

    On Feb. 6, Ibadan will unveil its 1.4MWP grid-tied solar panel system. Its advocacy for water stewardship has been recognized with various certifications, including the prestigious Alliance for Water Stewardship core certification.

    Speaking on the factory’s milestone, BAT’s director of external affairs for West and Central Africa, Odiri Erewa-Meggison, asserted that BAT Nigeria has remained steadfast in its commitment to driving ‘A Better Tomorrow,’ [the company’s corporate slogan] while prioritizing safety, sustainability and responsible business practices.

    “The Ibadan factory is not just a manufacturing facility; it is an integral part of the Nigerian community and we are continuously committed to making a positive impact on the lives of those around us,” she said.

    Erewa-Meggison stated that the anniversary celebration will serve as a tribute to the accomplishments and successes of the factory. “This is an opportunity to acknowledge the dedication and hard work of all employees, partners and stakeholders who have played a vital role in shaping our growth and journey,” she added. “We look forward to celebrating more milestones and positive contributions of the factory.”

  • BAT Nigeria Pays Anti-Competition Fine

    BAT Nigeria Pays Anti-Competition Fine

    Image: Maksym Kapliuk

    British American Tobacco has settled a $110 million fine imposed for abusing its market dominance in Nigeria, reports The Leadership.

    In Dec. 30 statement, BAT’s external affairs director for west and central Africa, Odiri Erewa-Meggison, said the penalty pertained to an investigation previously disclosed by the company in its 2022 annual report and updated in its half-year report for June 30, 2023.

    Nigeria’s Federal Competition & Consumer Protection Commission (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.

    Among other transgressions, BAT had penalized retailers for providing equal platforms for its competitors’ products, according to the FCCPC.

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

    Erewa-Meggison further acknowledged the monitorship and awareness campaigns stipulated in the consent order, confirming that BAT Nigeria has fully cooperated with the FCCPC’s appointed service providers.

  • 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.