Guinness Nigeria has withdrawn its court action against the National Agency for Food and Drug Administration and Control, NAFDAC and the Attorney General of the Federation, AGF after opting to pay N11.4 million fine to the regulatory agency.
Guinness had approached the court to contest the decision by NAFDAC to impose N1 billion administrative charges on the company for allegedly storing expired raw materials in its rented warehouse in Lagos.
NAFDAC had conveyed its decision to the company through a letter dated November 9, 2015.
However, NAFDAC said in a letter written to Guinness Nigeria on February 15, 2016 that recent developments “superseded the decisions contained in the Agency’s letter dated 9th November 2015”.
Consequently, after the N11.4million administrative and service charges was paid to NAFDAC, Guinness issued a Notice of Discontinuance of the suit it filed, while NAFDAC agreed to be present during the destruction of the expired raw materials in its rented warehouse.
Both parties also agreed that the resolution 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.
Guinness Nigeria, which is part of the Diageo Group of companies, is home to some of the most iconic brands in Nigeria, including Guinness Foreign Extra Stout.
Guinness Nigeria said its operations are to the highest standard of quality of production and processes guided by global best practices.
The company acknowledged the role by the Minister of Health and the former Director-General and senior management staff of NAFDAC towards the amicable resolution of the matter.