Home Latest Insights | News FCCPC Accrued N56 Billion in Internally Generated Revenue Through Penalties Imposed on Businesses in 2023

FCCPC Accrued N56 Billion in Internally Generated Revenue Through Penalties Imposed on Businesses in 2023

FCCPC Accrued N56 Billion in Internally Generated Revenue Through Penalties Imposed on Businesses in 2023

The Federal Competition and Consumer Protection Commission (FCCPC), disclosed that it accrued the sum of N56 billion as internally generated revenue (IGR) in 2023, with 90% derived through penalties imposed on businesses.

This was disclosed by the Executive Vice Chairman of the Commission, Mr Babatunde Irukera during a media chat in Abuja on Thursday.

Mr. Babatunde disclosed that the FCCPC remitted N22.4 billion to the federation’s account.

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He further stated that the FCCPC is not hell-bent on closing down businesses, but rather, the commission has adopted a system of holding businesses and companies accountable to ensure a stable market.

In his words,

What makes the market stable is holding businesses accountable. Consequence management system is what we have adopted. We are not trying to close businesses, but they must know that if you snooze, you lose. You cannot distort the market and expect that there will be no consequences”.

Speaking on the FCCPC budgetary allocation since 2017, he disclosed that the commission received a government budget of N1.0 billion and generated an Internally Generated Revenue (IGR) of N154 million in that year.

“In 2018 and 2019, the Commission received government budgets of N3.3 billion and N1.3 billion, respectively, while accruing an IGR of N377 million in 2019. Furthermore, in 2020, the Commission’s government budget amounted to N887 million, accompanied by an IGR of N864 million.

“By 2021, the government approved a budget of N1.8 billion to the Commission and the agency generated N4 billion and remitted N1.6 billion. What the government released from the treasury that year for the agency was N1.3 billion, so the agency gave the government more money than it got from it.

“In 2022, the government budget was N1.3 billion for the agency, the agency did not touch a single kobo of the operational or capital expense, the agency made N5.2 billion and remitted N2.6 billion. In 2023, our IGR is N56 billion, and we remitted to the government N22.4 billion”.

The FCCPC has continued to emphasize its commitment to promoting consumer interest as well as ensuring fair market practices. 

The significant generation of revenue from fines imposed on businesses reflects the commission’s commitment and desire to enforce the law and hold businesses accountable.

Recall that recently, the FCCPC on Wednesday sanctioned British American Tobacco (BAT) Nigeria and its affiliate companies a $110 million fine over the violations of the Commission Act and other regulations.

The commission asserted that the implicated companies had transgressed both corporate regulations and the National Tobacco Control Act, alongside other legal instruments. 

According to FCCPC, the alleged offenses involve BAT’s actions to impede competitors and impose penalties on retailers ensuring fair opportunities for rival products. Apart from the fine imposed on the company, other penalties were imposed for the violation. 

The commission has on several occasions stated that Competition regulation and consumer protection are not only to regulate big companies, but to also regulate the formal sector.

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