British American Tobacco (BAT) is entangled in major legal proceedings across Nigeria, with five states demanding a total of N10.6 trillion (£9.3 billion) for healthcare costs linked to smoking-related diseases.
These cases have been filed by the federal government alongside the states of Kano, Oyo, Lagos, Ogun, and Gombe, with claims stretching back to 2007. The legal action accuses BAT of negligence, fraud, and several other violations related to the manufacture and marketing of tobacco products.
BAT’s 2023 Annual Report read:
BAT also noted that tobacco-related litigation Outside the U.S. as at 31 December 2023 include medical reimbursement actions are being brought in Angola, Brazil, Canada, Nigeria and South Korea. It also noted that active tobacco product liability claims against the Group’s companies existed in 12 markets outside the U.S.
It added that “the only markets with five or more claims were Argentina, Brazil, Canada, Chile, Nigeria and Italy.”
The outcomes of these suits could set significant precedents affecting global tobacco regulation and corporate responsibility.
BAT’s troubles extend to regulatory issues. In 2022, following an investigation by the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) regarding alleged breaches of local competition and consumer protection laws, BAT was required to pay a penalty equivalent to $110 million.
This settlement, made in 2023, marked a significant financial commitment from BAT to resolve the regulatory disputes.
Additionally, BAT’s Nigerian subsidiaries are now under a two-year monitoring period to ensure compliance with the nation’s tobacco control standards.
The annual report also disclosed that the $110 million fine was paid in Naira not dollar.