One of Nigeria’s brewing giants, Guinness Nigeria Plc, has been fined N1 billion (5 million dollars) by the National Agency for Food and Drug Administration and Control (NAFDAC).
Guinness, in a letter Thursday, informed the management of the Nigerian Stock Exchange (NSE) of the fine.
In the letter, signed by Sesan Sobowale, its company secretary, Guinness said it was still not clear what offence it committed to deserve such a punishment.
“We don’t understand the basis for the computation of the administrative charges nor the particular regulations alleged to have been infringed,” the company lamented.
Guinness said while it waits for clarification from NAFDAC, “we have been advised that there is no legal basis for the demand for the payment of the said sum”.
The company said the alleged regulatory infraction relates, in part, to the destruction of expired raw material without the authority and supervision of NAFDAC.
The company said the allegation, which relates to expired raw material and not to any of its brands, were identified when NAFDAC officers visited one of their rented warehouses used as raw material store.
Guinness however expressed its commitment towards working with NAFDAC for amicable resolution of the matter.
The company said in its 60 years of operating in Nigeria, it has conducted businesses in accordance with all relevant Nigerian laws and regulations, and in line with Diagoe’s global best practices.