Nigeria adjourns $44 bln tobacco lawsuit to March
ABUJA Jan 14 (Reuters) - A Nigerian court adjourned on Monday the government's 5.3 trillion naira ($44 billion) lawsuit against three tobacco firms until March to enable the prosecution to serve court papers on one of the defendants.
Nigeria is seeking the sum, which is larger than its annual budget, in damages for public health costs for treating smoking-related diseases.
The defendants are the world's second biggest cigarette maker, British American Tobacco BAT.L, Altria (MO.N) unit Philip Morris International and Nigerian firm International Tobacco Ltd.
Government lawyers told a Federal High Court in the capital Abuja that Swiss-based Philip Morris had rejected court papers sent by courier. They asked for an adjournment to enable them to serve the company properly.
"We asked for adjournment to give us time to continue this process," prosecution lawyer Babatunde Irukera told Reuters after the court session.
Judge Binta Murtala Nyako adjourned the case to March 17.
The three tobacco firms are facing similar legal actions by three Nigerian state governments, which filed for $38.6 billion in damages in May 2007.
The cases are inspired by U.S. state lawsuits in the 1990s that led to multibillion-dollar settlements by the tobacco industry.
The federal government is seeking 4.8 trillion naira as preventive damages for future expenses Nigeria would pay for cigarette-related diseases. It also wants 136.3 billion naira as compensation to sick youths, 250 billion naira in restitution and 130 billion naira as punitive damages.
The federal government has also asked the court to ban the sale of cigarettes to under-18s and curb advertising aimed at young people. It said tobacco should not be sold within a kilometre of facilities used by children such as playgrounds, schools, hospitals and cinemas.
Nigeria has accused the tobacco firms of targeting young smokers by promoting the sale of individuals cigarettes, which it said reduces the effectiveness of mandatory health warnings printed on packets.
But non-government public health campaigners say Nigeria's health service is in a shambolic state and the government does not spend anything near the huge amounts it is claiming on delivering healthcare. Like other public services, healthcare has deteriorated during decades of corruption and mismanagement. (Reporting by Camillus Eboh, writing by Tume Ahemba, Editing by Tom Ashby)
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