3IRLJ67
3IRLJ67
Citations:
Please note: citations are provided as a general guideline. Users should consult their preferred
citation format's style manual for proper citation formatting.
-- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and
   Conditions of the license agreement available at
  https://heinonline.org/HOL/License
-- The search text of this PDF is generated from uncorrected OCR text.
-- To obtain permission to use this article beyond the scope of your license, please use:
  Copyright Information
           ANYOGU & AGUBOSIM: A Critical Overview of the FederalCompetition and Consumer
                                                                            ProtectionAct
Abstract
 The establishment of Competition law is long overdue as the idea of Competition law unsuccessfully came up 17
years ago at the National Assembly.       However in August 2015, The Federal Competition and Consumer
Protection Bill, 2015 gained legislative approval and was passed into law in February 2019 by President
Muhammadu Buhari. The Federal Competition and Consumer Protection Act 2018 repealed the Consumer
Protection Act, Cap. C25, Laws of the Federation of Nigeria 2004 and sections 118-128 of Investment and
Securities Act, Cap.124, LFN 2004. The objectives of the work are to analyze the Federal Competition
 Consumer Protection Act and to do a critique of the Act. This research work used doctrinal method of legal
research and accordingly gathered data from primary and secondary sources of law, namely, legislations and
journal articles as well as internet sources respectively. It was found that the establishment of competition law
will enhance the economy of the country and build confidence in the heart of the investors; however there are
steps to be taken by the Commission in order to enhance the effectiveness of the Act. It is recommended that
there is need to amend some of the provisions of the Act in other to enhance the efficiency of the Act.
Keywords: Overview, Federal Competition and Consumer Protection Act, Competition, Consumer Protection,
Nigeria
1. Introduction:
The Federal Competition and Consumer Protection Act 2018 (FCCPA) which was passed into law by the
President of Nigeria is a welcome development, it repealed the Consumer Protection Act, Cap. C25, Laws of the
Federation of Nigeria 2004, sections 118-128 of Investment and Securities Act, Cap.124, LFN 2004. It
established the Federal Competition Consumer Protection Commission (FCCPC), for the administration of the
Act and regulation of economic activities while Competition and Consumer Protection Tribunal (CCPT) was
also established by the Act to handle issues and dispute arising from the Act. The Act was established to
promote and maintain competitive markets; economic efficiency; secure protection of consumers' interest;
prohibit restrictive or unfair business practices and contribute to the sustainable development of the Nigerian
economy.1 The Act applies to all undertaking and commercial activities in Nigeria by individuals, corporate
bodies and government agencies, it extends its applicability to conduct outside Nigeria by a Nigerian citizen or a
person that resides in Nigeria or a corporate body incorporated or carrying on business in Nigeria. 2 The aim of
this study is to do a critical review of the Federal Competition Consumer Protection Act. This research work
used doctrinal method of legal research and accordingly gathered data from primary and secondary sources of
law, namely, legislations and journal articles as well as internet sources.
2. Clarification of Terms
Consumer protection agencies are basically established in order to protect consumers against harmful and
exploitative practices of some producers, manufacturers and advertisers alike. The exercise is a tripartite affair
involving the consumer himself, the manufacturers/suppliers and the consumer protection agencies that play
regulatory role. Consequently the key concepts are discoursed below.
Competition Law
The word Competition has been defined as the rivalry between companies selling similar products and services
with the goal of achieving revenue, profit and market share growth. 3 Competition makes the companies to dig
deep into the actual needs and demands of the customers; it keeps companies on their toes to constantly innovate
and make their products better and also provide customers with option to choose from while shopping. A
healthy competition leads to investment in more marketing activities by different players, which eventually
increases the overall demand for the product in the market. ' Competition law is seen as a set of rules, disciplines
and judicial decision adopted and maintained by a government in relation to agreements between firms that
*By Felicia ANYOGU, PhD, BL, Professor of Law, Nnamdi Azikiwe University Awka, Anambra State. E-mail:
fanyogu@gmail.com. Phone No.: 08060224995, and
*Blessing C. AGUBOSIM, LLB, BL, LLM Candidate, Department of Commercial and Property Law, Nnamdi Azikiwe
University Awka, Anambra State. E-mail: blessedofthelord89@gmail.com. Phone No.: +2347030694061
i FCCPA 2018, s1.
2
 FCCPA 2018, s2
3
 What is Competition in Marketing < https://study.com/academy/lesson/what-is-competition-in-marketing-definition-types-
quiz.html> accessed on 21 August 2021.
4
 Aashish Pahwa, 'Business Competiton: Definition, Types, Importance and Examples' <https://www.feedough.com/business-
competition/> accessed on 21 August 2021
                                                                                                            Page 1 67
IRLJ 3 (3) 2021
restrict competition from other firms, including concentration or abuse of market power by private firms. It also
helps to minimize unnecessary government regulation and control of the market. 5 Competition law is seen as
the most vital instrument to encourage competition in the market place. It has an effect on static efficiency of
market outcome. This means that the introduction of competition in the market advances resource allocation,
and makes certain that the production of goods and services are done at a minimal cost, thereby fostering the
maximization of welfare at a particular point in time. It also improves dynamic efficiency of outcomes in the
market. This is seen as competition helps to bolster the entrepreneurial spirit and creativity of market
participants. It also pushes producers towards innovation and improvement of their products, creating technical
progress over time. 6 In Nigeria, after independence from Colonial Rule, the major sectors of the Nigerian
economy - power supply, telecommunications, aviation, petroleum, railway, radio, television, etc were
nationalized with monopolistic structures, sole ownership and control residing in the hands of the Government.
Unfortunately, these Government monopolies reportedly promoted large scale corruption and inefficiencies
which inhibited growth to the detriment of the entire Nigerian economy. The liberalisation and privatisation of
some sectors of the Nigerian economy, especially the telecommunications and broadcasting sectors, starting
from the 1990s, ushered in some competition from the private sector against previous public monopolies. The
legislations which liberalised some aspects of the Nigerian economy also tried to introduce some minimal
Antitrust and Consumer Protection Regulations. 7
Consumer
There has been series of discussions on the actual definition of the word 'consumer'. However, a consumer,
according to Akomolede and Oladele, is any person who purchases or is supplied goods, or uses or consumes
goods and services at the end of a chain of production. ' Two salient features can be pointed out from this
definition, first is that the consumer is a buyer and/or user of a product or service and the second is that the
consumer is a member (in fact, at the end) of the production chain. These features underscore the importance of
the consumer in both economics and marketing theories, that is, without the consumers there cannot be any basis
for production. 9 Chambers English Dictionary 10 simply defines a consumer as one who consumes; as oppose to
producer, one who used an article produced. The new Federal Competition and Consumer Protection Act, 2018
unlike the repealed Consumer Protection Act gave an elaborate definition of a consumer by including any
person who purchases or offer to purchase goods otherwise than for the purpose of resale but does not include a
person who purchases any goods for the purpose of using them in the production or manufacture of any other
goods or articles for sale; or to whom a service is rendered."
Consumer Protection
Consumer protection has been defined by different authors, some defined consumer protection as accomplished
by setting minimum quality specification and safety standard for both goods and services and establishing
mechanisms to redress their grievances while others defined consumer protection as the provision of appropriate
and effective mechanisms (in order) to protect the pecuniary, health, safety and security interests of all legal
persons against misleading, fraudulent and harmful business practices including manufacturing, trading,
packaging, advertising, distributing and selling of products (Goods and services) to ultimate consumer.1 2
Furthermore, consumer protection in its elaborate form refers to the liability of not only the
manufacturers/producers of goods and services but also retailers, wholesalers, distributors and other suppliers of
goods and services to persons who use or consume them.13 Consumer protection also refers to the act of
safeguarding the interests of the consumer in matters relating to the supply of goods and services." In Nigeria,
like in other parts of the world, consumer protection is the concept designed to protect consumers from
unscrupulous producers and service providers. It denotes the attempt by governments to provide regulatory
framework to protect and enforce the rights of people who pay for goods and services. Therefore, the Law of
Page 1 68
              ANYOGU & AGUBOSIM: A Critical Overview of the FederalCompetition and Consumer
                                                                               ProtectionAct
Consumer protection has a two-fold purpose. On the one hand, it protects the interests, rights and safeties of end
user of products and services; and on the other hand, to the extent that it derives from and relates to contractual
transactions." The concept of consumer protection is generally used to classify measures that seek to ensure
that consumers are fairly treated and that their rights are protected in commercial transactions that involve the
supply of goods or services. 16 Consumers need protection because they are generally powerless; most of them
are semi illiterate and less sophisticated, while the producers are smart, powerful and employ the services of
sophisticated and aggressive trained marketers capable of selling anything to consumers.1 According to
Burdah18 he asserted that, a hundred year ago, consumer protection was largely unnecessary as most products
then were locally produced and there was personal relationship between the seller and the buyer. Any buyer who
had complaint was expected to directly go to the producer, furthermore, goods and products were not as
complex as today's, so it was easy to tell the standard from sub-standard. However, today in addition to the
complexity and lack of sufficient knowledge of handling the products, the consumer is thousands of kilometers
away from the manufacturer. The implication of this on the consumer is that he has no direct contact with the
producer and this will make it difficult for him to sue the producer.
The powers of the Commission stated in section 18 of the Act can be summarised to include:
           i.    Prevention of the circulation of goods or services which constitutes public hazard.
          ii.    Power to cause quality tests to be carried out on consumer goods as it deems necessary.
         iii.    Power to seal up any premises on reasonable suspicion that such premises contains or is being
                 used to produce goods or services that are fake or hazardous to the welfare of a consumer.
                                                                                                             Page 1 69
IRLJ 3 (3) 2021
              iv.     Power to make regulations relating to the charging and collection of fees, levies, fines and the
                      imposition of administrative penalties.
               v.     Power to compel manufacturers, suppliers, importers, wholesalers, retailers and other
                      undertakings where appropriate to certify that all standards are met in the production of goods
                      and services and give public notice of any health hazards associated with such manufactured
                      goods and services.21
Dominant Position
An undertaking is considered to be in a dominant position where he acts without taking        account of the reaction
of its customers, consumers or competitors; where he enjoys a position of economic            strength enabling it to
prevent effective competition being maintained on the relevant market and having the          power to behave to an
appreciable extent independently of its competitors, customers or consumers.31 The            Act prohibits abuse of
21 Ibid.
22
   FCCPA 2018, s39(2)(3); 47(1)(a-d).
23
24
   FCCPA 2018, s47(2).
   FCCPA 2018, s54
25   FCCPA 2018, s55(1)
26   Constitution 1999, s251(f)
27
     FCCPA 2018, s41
28   FCCPA 2018, s43
29 FCCPA 2018, s156 (2-4).
30
   FCCPA 2018, s59.
31 FCCPA 2018, s70
Page 1 70
           ANYOGU & AGUBOSIM: A Critical Overview of the FederalCompetition and Consumer
                                                                            ProtectionAct
dominant position as stated in section 72 of the Act and the consequences of such abuse and its punishment are
provided in sections 73-75 of the Act.
Monopoly
The Commission has the power to investigate a monopoly situation where it suspects that the supply of goods or
services or importation or exportation of any goods or services effects competition in any of the markets in
Nigeria. 2 Where monopoly is found to exist, the Commission shall consider the actions to be taken to remedy
or prevent any adverse effects resulting from a monopoly situation and make necessary recommendations to the
tribunal,33 which will make an order stipulated in section 86(3) of the Act as follows:
               i.  Declaration of the agreement is unlawful
              ii.  To require any party to the agreement to terminate the agreement within a specific time
            iii.   To require publication of prices of goods or services by the supplier
             iv.   To prohibit or restrict acquisition by any undertaking of the whole or part of another
                   undertaking. etc
Mergers
Before the FCCP Act was enacted, the issue of mergers and acquisitions were regulated by the Securities and
Exchange Commission (SEC) and was provided for in the Investment and Securities Act 2007(ISA 2007)34 and
the Securities and Exchange Commission Rules and Regulation 2013. By virtue of the FCCP Act, merger occurs
where one or more undertakings directly or indirectly acquire or establish direct or indirect control over the
whole or part of the business of another undertaking or where there is a purchase or lease of shares of another
undertaking or there is an amalgamation or combination with the other undertaking or where there is a joint
venture.35 Mergers were categorized into small and large mergers under the FCCP Act unlike the ISA 2007 that
divided mergers into small, intermediate and large mergers. Section 93 to 103 of the FCCP Act provides for
procedure for mergers.
Political Influence
Part XI of the Act made provision for price regulation and it vested on the President of the Federal Republic of
Nigeria the power to declare prices of goods and services in the Federal Gazette. Such power, ordinarily ought
to reside with the FCCPC and not the President, if it will be ensured that the Commission is freed from any
political influence. This provision is also inconsistent with the provisions of the Price Control Act 36 which gives
the Price Control Board to fix prices of commodities. Research has shown that government is not willing or uses
delay mechanism to frustrate decisions of economic importance where such decision will jeopardise their
political interest. There is need to insulate Nigeria Competition regime from undue political interference in its
enforcement as this may pose a challenge in the enforcement of the Act. The Global best practices in
competition regulation is that the competition authority is established as an independent, non-ministerial
department, subject only to the law of the land, like the South African Competition Commission and the UK's
Competition and Markets Authority. There is need to insulate the Commission from external influence of
political actors, as well as powerful multinational firms, that may threaten the independence of the FCCPC via
regulatory capture as is often the case of new competition authorities in developing countries.37
32
   FCCPA 2018, s76; 77.
33
   FCCPA 2018, s84.
34 SEC 2007, s(98-122).
35
   FCCPA 2018, s92.
36
   Price Control Act, Cap P. 28 LFN 2004. s5
37
   EC Uwadi, 'The Nigerian Federal Competition and Competition Protection Act 2019: Lessons from South Africa'
<https://www.afronomicslaw.org/2019/09/25/the-nigerian-federal-competition-and-competition-protection-act-019-lessons-
from-south-africa/> accessed 16 June 2021.
                                                                                                              Page 1 71
IRLJ 3 (3) 2021
questions as to whether these agencies will respond favourably to any approaches to be made by the FCCPC to
them pursuant to the provisions of Section 105(4) Act. 38
38
 EC Uwadi, 'A Critique of the Nigerian Federal Competition and Consumer Protection Act 2019'
<https:/awards.concurrences.com/IMG/pdf/6._a_critiqueof_thenigerianfederal_competitionandconsumer_protection_
act_fccpa_2019.pdf?56899/14f2cc8aff6b5df460d0e9b4ad2e3d2ae0027829/>       accessed 7 July 2021
39
   FCCPA 2018, s38.
40 Ibid.
43 OP Obioma, AR Dike, Analyzing the Prospects and Challenges in Implementing the Legal Framework for Competition
Regulation in Nigeria World Academy of Science [2021] (15)(4) Engineering and Technology InternationalJournalof Law
and PoliticalSciences 21
<file:///C:/Users/Blessing/Desktop/New%20folder%20(2)/MY%20THESIS%202/CORRECTED%20THESIS/analyzing-
the-prospects-and-challenges-in-implementing-the-legal-framework-for-competition-regulation-in-nigeria.pdf> accessed on
23 August 2021
44
   FCCPA 2018, s55.
Page 1 72
             ANYOGU & AGUBOSIM: A Critical Overview of the FederalCompetition and Consumer
                                                                              ProtectionAct
Typographical Errors
There are some typographical errors, conflicting provisions, and wrong placement of some sections of the act. This could
have been an oversight or clerical error. Whatever the case may be, it is expected that a legislation which took 17 years, and
passed through several review processes by the stakeholders, lawmakers and president before the latter appended his
signature should be error proof. 46 These errors are highlighted below:
       a.   Section 167(1) (b) in the interpretation section defines "Act" as Federal Competition and Consumer Protection Act
            2017, while Section 168 provides that "This Act may be cited as the Federal Competition and Consumer
            Protection Act 2018".47
       b.   Part XII under the arrangement of sections reads "Price Mergers" instead of "Mergers". This may have been a
            result of copy and paste, as the preceding Part XI is "Price Regulation". Although this error does not reflect in the
            body of the FCCPA in section 92, it is important for it to be corrected. 48
       c.   The marginal note of section 9 talks about emoluments of the members of FCCPC, however, the said section only
            talks about vacancy in the board of FCCPC. Emolument is nevertheless found in Section 20(4). The same occurred
            in section 19(1) which talks about the Executive Vice-Chairman of FCCPC while the marginal note refers to the
            Secretary of the FCCPC which is found in Section 19(3).49
       d.   Section 48(5)(a) made reference to subsection (4), however, having reviewed the Act and compared it to that of
            SA from which Nigeria adopted most of its FCCPA provisions, it is my humble view that the reference to
            subsection (4) is erroneous and ought to be subsection (3).50
5. Conclusion
The enactment of the Competition Law is a welcome development which will enhance the economy of the Country.
However FCCPC needs to take some necessary steps like appointment of expect to hand both the Commission and the
Tribunal; curtailing of every form of political interference; harmonizing the statutory powers of regulatory agencies with that
of FCCPC; providing judicial immunity to the members of Tribunals to enable them carry out their functions without fear;
providing longer tenure for the members of tribunals; providing time frame within which matters will be heard in the FCCPC
and the Tribunal and in conclusion, there is need to amend some of the provisions of the Act in other to enhance the
efficiency of the Act.
45
   EC Uwadi, Op Cit, 12
46 Ibid.
47 Ibid.
48 Ibid.
49 bid.
50
     Ibid
Page 1 73