FCCPC warns firms against non-compliance with statutory obligations

The Federal Competition and Consumer Protection Commission (FCCPC) has warned firms, legal advisers, transaction parties and other stakeholders against non-compliance with statutory obligations on mergers, acquisitions and other business combinations under the Federal Competition and Consumer Protection Act, 2018.

In a statement by its Head of Mergers and Acquisitions Department, Eme Eyo David-Ojugo, the commission warned that any transaction meeting the thresholds set out in the applicable Notice on Merger issued pursuant to Section 93(4) of the FCCPA must be communicated to the commission for prior review and approval before implementation. The statement added that the commission under the Federal Competition and Consumer Protection Act has the power to review and approve, subject to conditions, it can prohibit mergers and qualify business combinations once they are notified.

This framework is designed to preserve fair competition, prevent harmful market concentration, and protect the public interest in the Nigerian economy.

“The requirement applies to a broad range of transactions, including share acquisitions, asset acquisitions, joint ventures, and other arrangements that fall within the legal definition of a merger under the Act and relevant regulations.

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“The notification process enables the commission to assess whether a proposed transaction is likely to prevent or lessen competition in any relevant market in Nigeria. The process also supports the commission’s responsibility to monitor market developments and maintain an informed understanding of competitive dynamics across sectors.”

FCCPC also urged parties to engage with the commission at an early stage where a contemplated transaction is notifiable. Early engagement, including pre-notification consultations, are necessary to provide regulatory clarity, support efficient review timelines, and assist parties in meeting applicable compliance requirements.

The commission said the emphasis here is on failure for a notifiable transaction, which constitutes a contravention of the FCCPA, as this may attract administrative penalties or other enforcement actions in accordance with the law.

“So, we advise firms and transaction parties to take all necessary steps to ensure compliance before implementing any transaction that may fall within merger review jurisdiction,” the statement said.

It added that stakeholders seeking further enquiries or clarification may contact the Commission or visit the FCCPC website.

The commission reaffirmed its commitment to promoting fair competition, protecting consumers, and supporting a transparent, efficient and competitive business environment in Nigeria.