FCCPC warns against breach of merger rules, vows to protect public interest

Business

ABUJA, Nigeria (NPA) — The Federal Competition and Consumer Protection Commission (FCCPC) has cautioned firms, legal advisers, transaction parties, and other stakeholders against violating statutory obligations relating to mergers, acquisitions, and business combinations under the Federal Competition and Consumer Protection Act (FCCPA), 2018.

In a statement, the Commission reiterated that it has the authority to review, approve, approve subject to conditions, or prohibit mergers and qualifying business combinations once they are duly notified. This framework, it explained, is designed to preserve fair competition, prevent harmful market concentration, and protect the public interest in Nigeria’s economy.

The FCCPC emphasised that any transaction meeting the thresholds set out in the Notice of Threshold for Merger Notification, issued pursuant to Section 93(4) of the FCCPA, must be reported to the Commission for prior review and approval before implementation. This requirement applies to a wide 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.

The Commission noted that the notification process enables it to assess whether a proposed transaction is likely to substantially prevent or lessen competition in any relevant market in Nigeria, or raise public interest concerns. It also supports the Commission’s responsibility to monitor market developments and maintain an informed understanding of competitive dynamics across sectors.

FCCPC encouraged parties and their advisers to engage with the Commission at an early stage where a contemplated transaction may be notifiable. Early engagement, including pre‑notification consultations, can provide regulatory clarity, support efficient review timelines, and assist parties in meeting compliance requirements.

The Commission stressed that failure to notify a notifiable transaction constitutes a contravention of the FCCPA and may attract administrative penalties or other enforcement action. Accordingly, it advised firms and transaction parties to take all necessary steps to ensure compliance before implementing any transaction that may fall within its merger review jurisdiction.

Stakeholders seeking further clarification were directed to contact the Commission or visit its website. The FCCPC reaffirmed its commitment to promoting fair competition, protecting consumers, and supporting a transparent, efficient, and competitive business environment in Nigeria.