The Nigerian arm of British confectionery and drinks giant Cadbury Schweppes is facing allegations that it has been dumping chocolate labelled with deliberately misleading safety and quality information on the local market.

The National Agency for Food and Drugs Administration and Control (Nafdac) has now launched legal action against the firm, which is due to reach court at the end of this week, after citing problems earlier this year with a shipment of Dairy Milk and Fruit & Nut chocolate bars that arrived from India.

At the time, Cadbury Nigeria, which is 46% owned by Cadbury Schweppes, paid an "administrative penalty" of N800,000 (US$6,287) for "perceived infringements" and assumed the settlement meant the case was over.

Wole Olufon & Co, Cadbury Nigeria's lawyers, explained that the firm could not understand why the Nafdac complaint is continuing. "Curiously, the agency has denied ever reaching any agreement with Cadbury Nigeria for an amicable resolution of the issues," Wole Olufon told the Financial Times.

The case echoes a dispute last year over labelling between the Nafdac and food behemoth Nestlé. The latter insisted that this has now been resolved.