(Ecofin Agency) - In Nigeria, Guinness has just been handed a fine of one billion naira (USD 5 million) by the agency in charge of food and drugs regulation. This penalty is for the destruction and re-validation of expired raw materials without prior approval, Reuters reports.

The subsidiary of Diageo expressed its incomprehension on the origin of this fine and the particular law which has been breached. However, the groups continues, negotiations are ongoing with the National Agency for Food And Drugs Administration and Control (NAFDAC) in order to solve this issue.

Analysts have no doubts that both parties will soon reach an agreement considering the strategic importance of the Nigerian subsidiary for British group Diageo. The company recently announced that it would increase its shareholding in Guinness Nigeria from 54.3% to 70%. A way of strengthening its presence on the biggest African market in order to get for battle, when SAB Miller has just merged with AB InBev?