Nigeria's Coscharis Motors fights court-ordered shutdown in consumer dispute
Coscharis Motors is seeking to overturn a ruling that could force the closure of its Nigerian operations over a single defective vehicle, exposing the regulatory risks facing major foreign brand franchisees.
Coscharis Motors has asked a Federal High Court in Abuja for permission to appeal a judgment that could force the luxury car dealer to close its premises. The May 2026 ruling ordered the Federal Competition and Consumer Protection Commission (FCCPC) to shut down the company or impose a fine over a defective Range Rover purchased in 2024.
The dispute has now ensnared the consumer watchdog itself. The complainant, Florence Ozor, has initiated contempt proceedings against the FCCPC for allegedly failing to enforce the shutdown order, with a hearing set for July 28. The FCCPC, however, maintains it complied by facilitating the delivery of a replacement 2025 Range Rover Sport on June 5.
To take delivery of the replacement vehicle, valued at 435 million naira, Ozor was instructed to pay 58.3 million naira. That sum represents one-third of the 175 million naira additional cost of the new vehicle. The regulator argues it cannot be held responsible for Coscharis not being originally named as a defendant in the lawsuit.
Coscharis is fighting back on procedural grounds. The company argues its absence from the original suit violated its constitutional right to a fair hearing, noting that Ozor unilaterally dropped it as a party without a court order. Justice Emeka Nwite granted Coscharis leave to appeal, scheduling a ruling for July 24.
Corporate exposure
The stakes extend well beyond a single defective car. Coscharis Motors, a flagship subsidiary of the Coscharis Group led by entrepreneur Cosmas Maduka, holds exclusive Nigerian franchises for BMW, Jaguar Land Rover, Ford, and Rolls-Royce. Its local assembly plant employs 86 people and has a theoretical capacity of up to 26,000 vehicles annually.
For investors and multinational brand partners, the case highlights acute operational risks in Nigeria. The prospect of a court-mandated shutdown of a major industrial assembler over a consumer grievance underscores the unpredictable intersection of consumer protection law and corporate operations in the market.
