Guinness Nigeria says it has settled its dispute with National Agency for Food and Drug Administration and Control (NAFDAC) following a one billion naira fine slammed on the multinational company.
In a statement issued on Thursday, Guinness Nigeria said it terminated its court action against NAFDAC and has now resolved the matter.
“Guinness Nigeria can now confirm that a Notice of Discontinuance of the court action instituted against the National Agency for Food and Drug Administration and Control (NAFDAC) and the Attorney General of the Federation has been filed. The action was started following the receipt by the company of a letter dated 9th November 2015 from NAFDAC which, among others, imposed administrative charges of one billion naira (N1billion) on the company,” Guinness Nigeria said.
The termination of the court action was predicated on the letter dated 15th February 2016 from NAFDAC to the company which was stated to “supercede the decisions contained in the Agency’s letter dated 9th November 2015”. As part of the resolution,NAFDAC would be present during the destruction of the expired raw materials in its rented warehouse and both parties agreed that this would be the procedure for the exercise in future. Guinness Nigeria also agreed to pay administrative and service charges to NAFDAC to cover the cost of the investigative inspection of raw materials carried out by the Agency as well as the supervision by NAFDAC of the destruction of the raw materials which would be carried out by Guinness Nigeria.
“The administrative and service charges of approximately N11.4m has since been paid to NAFDAC.
“Guinness Nigeria is home to some of the most iconic brands in Nigeria including Guinness Foreign Extra Stout. As part of the Diageo group of companies, Guinness Nigeria operates to the highest standard of quality in its production and processes, being guided not only by Nigerian but global best practices.
“Guinness Nigeria acknowledges the support received from the Honourable Minister of Health and from the former Director-General and senior management of NAFDACtowards the amicable resolution of the matter and expresses its commitment to maintaining and fostering a strong and mutually beneficial relationship with NAFDAC,” the statement read.