The Federal Competition and Consumer Protection Commission (FCCPC) is Nigeria’s foremost regulatory body for competition and consumer protection. Established by the Federal Competition and Consumer Protection Act (FCCPA) 2018, the FCCPC plays a vital role in regulating market activities to ensure fairness, transparency, and consumer welfare. The FCCP Act repealed the Consumer Protection Council Act Cap. C25, Laws of the Federation of Nigeria 2004, thereby establishing a more robust framework for consumer protection and fair competition. This article examines the key functions of FCCPC with the aid of relevant statutory and judicial authorities.
Legal Basis of the FCCPC
The establishment, powers, and functions of the FCCPC are rooted in the FCCPA 2018, particularly in Sections 17 through 19. Section 17 of the FCCPA provides a comprehensive outline of the Commission’s objectives, while Sections 18 and 19 detail its powers and operational scope. Additionally, the Federal High Court has exclusive jurisdiction over competition-related issues as provided under Section 39 of the Act.
1. Promotion of Market Competition
One of the cardinal functions of FCCPC is to promote and maintain competitive markets in the Nigerian economy. Section 17(a) of the FCCPA mandates the Commission to “promote and maintain fair competition in the Nigerian markets.” This function is crucial to curbing monopolistic practices and ensuring that businesses operate on a level playing field. It prevents anti-competitive agreements, abuse of dominant position, and other unfair trade practices that hinder innovation and consumer choice.
A notable judicial affirmation of this role can be seen in FCCPC v. Multichoice Nigeria Ltd (Suit No: FHC/ABJ/CS/307/2021), where the Federal High Court ruled in favor of FCCPC’s mandate to investigate pricing models in the satellite television industry, underlining the Commission’s watchdog role in ensuring fair market practices.
2. Consumer Protection and Advocacy
Protecting the interests of consumers is another core responsibility under the functions of FCCPC. Section 17(e) of the FCCPA tasks the Commission with protecting consumers from unfair trade practices and ensuring that consumers have access to accurate information to make informed choices.
The FCCPC actively investigates consumer complaints, enforces product safety standards, and ensures that businesses provide goods and services that meet acceptable quality benchmarks. A recent enforcement case involved the Commission’s intervention against a popular restaurant chain accused of selling contaminated food. Following investigations, sanctions were imposed, and compensation was secured for affected consumers, demonstrating the FCCPC’s commitment to consumer rights.
Moreover, the Commission runs public enlightenment campaigns to educate consumers about their rights, including the right to safety, choice, redress, and information as enshrined in Part XI of the FCCPA.
3. Regulation of Mergers and Acquisitions
Among the most technical functions of the FCCPC is the regulation of mergers and acquisitions. Sections 93 to 103 of the FCCPA provide for the control of concentrations that may substantially lessen competition. The FCCPC has the authority to review and approve mergers to prevent market dominance that may be detrimental to consumer welfare or market efficiency.
The landmark case of Stanbic IBTC Holdings Plc Merger Review (2020) saw the FCCPC scrutinise the merger to ensure it wouldn’t result in reduced competition. The Commission issued a conditional approval, requiring divestiture from certain market segments to maintain fair competition—affirming its evaluative power in merger control.
4. Investigation and Enforcement
Section 18 of the FCCPA empowers the Commission to investigate suspected anti-competitive conduct and violations of consumer rights. The FCCPC may conduct dawn raids, issue summons, and prosecute offenders. It can also impose administrative penalties and initiate legal actions in the Federal High Court.
The enforcement power of the FCCPC was tested in the Bet9ja Case (2022) where the Commission fined the sports betting company for breaching promotional terms and failing to disclose adequate information to consumers. This enforcement serves as a precedent for regulatory compliance in the tech and gaming industry.
The FCCPC also collaborates with other regulatory agencies such as the Central Bank of Nigeria (CBN), Nigerian Communications Commission (NCC), and National Agency for Food and Drug Administration and Control (NAFDAC) to enforce cross-sectoral regulations.
5. Monitoring and Surveillance of Market Activities
Another essential inclusion in the functions of FCCPC is its mandate to monitor and report on market trends, pricing behaviours, and supply chain practices. This function is both preventive and reactive, allowing the FCCPC to identify potential market failures before they escalate.
For example, during the COVID-19 pandemic, the FCCPC issued directives against price gouging and hoarding of medical and sanitary products. The Commission enforced price controls and sanctioned defaulters, ensuring that essential goods remained affordable and accessible to Nigerians during a public health crisis.
6. Collaboration and Policy Development
Section 17(g) of the FCCPA authorises the FCCPC to collaborate with government ministries, departments, and agencies (MDAs) to develop policies that promote consumer welfare and competitive markets. It also partners with international bodies like the United Nations Conference on Trade and Development (UNCTAD) and the Consumer Protection Cooperation Network to align Nigeria’s competition law with global best practices.
Through stakeholder engagement, research, and policy advocacy, the FCCPC contributes to the formulation of pro-market policies that balance business growth with consumer interests. In 2021, the Commission launched the National Policy on Fair Competition and Consumer Protection, aimed at creating a uniform framework across sectors.
7. Handling Complaints and Dispute Resolution
Handling consumer complaints and providing dispute resolution mechanisms are integral functions of FCCPC. The Commission operates an accessible complaints portal where aggrieved consumers can lodge grievances against businesses. It employs Alternative Dispute Resolution (ADR) mechanisms, such as mediation and conciliation, to resolve issues swiftly and amicably.
In Mrs. Chiamaka Okeke v. XYZ Electronics Ltd (2023), the FCCPC successfully mediated a dispute involving the sale of a defective washing machine. The Commission facilitated a refund and directed the business to revise its return policy—highlighting its effective role in dispute resolution.
See Also: Legal Compliance as a Competitive Advantage in the Nigerian Market
Conclusion on the Functions of FCCPC
The functions of FCCPC are both expansive and dynamic, touching virtually every aspect of consumer protection and market regulation in Nigeria. From promoting competition and regulating mergers to enforcing consumer rights and collaborating on policy development, the FCCPC is instrumental in shaping a fair and transparent economic landscape. Its statutory powers, as entrenched in the FCCPA, and its evolving jurisprudence, as seen in various judicial pronouncements, provide a robust framework for achieving its mandate.
With the increasing complexity of digital marketplaces and global trade, the FCCPC’s role continues to grow in relevance. Strengthening its capacity, ensuring legal compliance among businesses, and deepening public awareness will remain critical in the years ahead. As such, understanding the functions of FCCPC is essential for consumers, businesses, and legal practitioners alike.