Introduction
Nigeria’s competition law framework is entering a critical phase. The enactment of the Federal Competition and Consumer Protection Act (FCCPA) in 2019 and the establishment of the Federal Competition and Consumer Protection Commission (FCCPC) marked a milestone in aligning the country with the best global practices in market regulation. Beyond statutory provisions, the challenge lies in fostering a culture of compliance, ensuring fair competition, and integrating these principles into business strategy.
The forum, Competition Law in Action: Compliance, Enforcement, and Business Strategy in Nigeria, held on 26 November 2025 and organised by the Nigeria–South Africa Chamber of Commerce in collaboration with Streamsowers & Köhn, provided timely insights into how regulators, businesses, and advisers are responding to Nigeria’s evolving competition law framework. Discussions centered on the core pillars of the regime, restrictive agreements, abuse of dominance, and merger control, while also addressing the practical difficulties of integrating competition principles into everyday business decision-making. Together, these perspectives underscored the need for a pragmatic, policy-driven approach that aligns legal compliance with commercial strategy and market realities.
Restrictive Agreements: Navigating Collaboration and Competition
At the heart of competition law is the principle that businesses must compete independently. The FCCPA prohibits agreements that fix prices, limit output, share markets, or coordinate tenders. Such conduct undermines consumer welfare and market efficiency. Yet, the distinction between anti-competitive collusion and legitimate collaboration is often subtle. Joint ventures, supply agreements, and standardisation initiatives may have both efficiency and competitive effects. Structuring these arrangements to enhance operational performance while remaining compliant is critical.
Practitioners recommend early competition risk assessments, careful drafting of joint marketing and distribution arrangements, and, where appropriate, applications for exemption under Section 60 of the FCCPA. Compliance is not merely a legal obligation; it is a strategic advantage. Properly designed cooperative initiatives can drive innovation, improve quality, and expand access for consumers.
Abuse of Dominance: Responsibility Accompanies Market Power
Market dominance is not inherently unlawful. The FCCPA targets the abuse of that power, conduct that restricts, excludes, or exploits competitors and consumers. Practices such as excessive pricing, predatory conduct, or refusal to deal illustrate the kind of behaviour regulators monitor. Panel discussions emphasised a nuanced approach. Dominance must be disciplined by responsibility, balancing the protection of competitive processes with the recognition of legitimate business success. Evidence-based enforcement and economic analysis are essential, particularly in sectors with pre-existing concentration or high barriers to entry.
Internal audits, compliance training, and proactive monitoring of pricing, rebate systems, and exclusivity arrangements help businesses manage risk. The FCCPC encourages dialogue, transparency, and procedural fairness, while enforcement remains a tool to promote behavioural change rather than solely punitive action.
Merger Control: Integrating Competition into Strategic Growth
Mergers and acquisitions are engines of growth and innovation but also risk entrenching dominance or reducing market contestability. The FCCPC, in collaboration with sector regulators, applies a substantive test to assess whether a transaction substantially prevents or lessens competition. Efficiencies and public interest considerations are also weighed, reflecting best international practices.
Experience demonstrates that early engagement with regulators is a key success factor. Pre-notification consultations, competition impact assessments, and post-transaction compliance ensure transactions are legally robust and strategically positioned. Cross-border transactions, particularly within the ECOWAS region, require additional coordination to address multi-jurisdictional notification obligations. The overarching lesson is clear: embedding competition assessment in the transaction design stage, rather than as an afterthought, mitigates risk and fosters regulatory trust.
Compliance Culture: Beyond Policies and Procedures
Effective competition compliance requires more than codes of conduct, it demands a culture of awareness and continuous education. Businesses must proactively embed competition principles, train frontline teams, and maintain internal reporting mechanisms. Regulatory inspections, dawn raids, and audits require designated response teams and structured protocols to manage engagement while minimising operational disruption.
Industry associations play a critical role in facilitating knowledge sharing, training, and the adoption of internal compliance frameworks. Such collaborative efforts strengthen both organisational readiness and the broader compliance ecosystem.
Digital Markets: Emerging Regulatory Challenges
A notable gap in Nigeria’s framework is the regulation of digital markets. Traditional competition analysis relies heavily on price as a measure of market substitution. Yet, many digital platforms operate with free services, requiring regulators to assess service quality, privacy, and data protection as proxies for consumer welfare. As markets digitise, ex ante obligations and platform-specific frameworks may be needed to prevent abuse and ensure fair competition. Addressing these challenges demands regulatory innovation, cross-sector collaboration, and the adaptation of enforcement tools to evolving market realities.
Conclusion
Nigeria’s competition law regime has made significant strides in a short period, but the journey is ongoing. Its success depends not only on statutory provisions or enforcement actions, but on how businesses internalise these principles in daily operations. Compliance is not a constraint, it is a driver of sustainable growth, innovation, and market trust. By fostering responsible business conduct, integrating competition considerations into strategic decisions, and engaging proactively with regulators, Nigeria can build competitive, inclusive, and resilient markets.
The FCCPC, industry associations, and legal advisers each have a role to play in shaping a culture of compliance, promoting fair competition, and unlocking the potential of Nigerian markets for the benefit of consumers, businesses, and the economy at large.