As
part of efforts to ease the Nigerian business environment for investors
and grow the economy, the House of Representatives has passed a Bill
that seeks to, among other things, establish the Competition and
Consumer Protection Tribunal to promote healthy business competition and
strengthen consumer rights.
part of efforts to ease the Nigerian business environment for investors
and grow the economy, the House of Representatives has passed a Bill
that seeks to, among other things, establish the Competition and
Consumer Protection Tribunal to promote healthy business competition and
strengthen consumer rights.
The
House adopted the recommendation of the report on the bill sponsored by
the Speaker, Mr Yakubu Dogara, to repeal the Consumer Protection
Act, establish the Federal Competition and Consumer Protection
Commission and Consumer Protection Tribunal.
House adopted the recommendation of the report on the bill sponsored by
the Speaker, Mr Yakubu Dogara, to repeal the Consumer Protection
Act, establish the Federal Competition and Consumer Protection
Commission and Consumer Protection Tribunal.
The
bill when concurred by the Senate and assented to by the President,
apart from developing business, will also promote fair, efficient and
competitive markets in the Nigerian economy, facilitate access by all
citizens to safe products, secure the protection of rights for all
consumers in Nigeria.
bill when concurred by the Senate and assented to by the President,
apart from developing business, will also promote fair, efficient and
competitive markets in the Nigerian economy, facilitate access by all
citizens to safe products, secure the protection of rights for all
consumers in Nigeria.
With
the adoption of report by the green chamber, the Bill has scaled
through the final stage on the floor of the House of Representatives.
the adoption of report by the green chamber, the Bill has scaled
through the final stage on the floor of the House of Representatives.
The
proposed law proposes a 5 year jail term and N50 million for
individuals who violate the competition law and a fine not exceeding ten
percent turnover in the preceding business year of a defaulting
company.
proposed law proposes a 5 year jail term and N50 million for
individuals who violate the competition law and a fine not exceeding ten
percent turnover in the preceding business year of a defaulting
company.
For
those in breach of consumer rights, it provides for individuals,
imprisonment for a term not exceeding five years, or to payment of fine
not exceeding ten million naira or both; and in the case of a body
corporate, liable on conviction, to a fine of not less that one hundred
million naira or ten percent of its turnover in the preceding year,
whichever is higher.
those in breach of consumer rights, it provides for individuals,
imprisonment for a term not exceeding five years, or to payment of fine
not exceeding ten million naira or both; and in the case of a body
corporate, liable on conviction, to a fine of not less that one hundred
million naira or ten percent of its turnover in the preceding year,
whichever is higher.
The
tribunal, as proposed in the Bill, prohibits acts that deliberately
seek to restrain competition by “directly or indirectly fixing a
purchase or selling price of goods or services…; dividing markets by
allocating customers, suppliers, territories or specific types of goods
and services; limiting or controlling production or distribution of any
goods or services, markets, technical development or investment;
engaging in collusive tendering and making the conclusion of an
agreement subject to acceptance by the other parties of supplementary
obligations which, by their nature or according to their commercial
usage, have no connection with the subject of such agreement.”
tribunal, as proposed in the Bill, prohibits acts that deliberately
seek to restrain competition by “directly or indirectly fixing a
purchase or selling price of goods or services…; dividing markets by
allocating customers, suppliers, territories or specific types of goods
and services; limiting or controlling production or distribution of any
goods or services, markets, technical development or investment;
engaging in collusive tendering and making the conclusion of an
agreement subject to acceptance by the other parties of supplementary
obligations which, by their nature or according to their commercial
usage, have no connection with the subject of such agreement.”
It
also seeks to prohibit “minimum resale price maintenance”, stating that
“any term or condition of an agreement for the sale of any goods or
services is void to the extent thst it purports to establish or provide
for the establishment of minimum prices to be charged on the resale of
the goods or services in Nigeria.”
also seeks to prohibit “minimum resale price maintenance”, stating that
“any term or condition of an agreement for the sale of any goods or
services is void to the extent thst it purports to establish or provide
for the establishment of minimum prices to be charged on the resale of
the goods or services in Nigeria.”
When
assented to by the president, the Bill will also protect all patented
products, protect employees, ensure that consumers have access to
products made to the highest standards and compensation for faulty
purchases or transactions.
assented to by the president, the Bill will also protect all patented
products, protect employees, ensure that consumers have access to
products made to the highest standards and compensation for faulty
purchases or transactions.
Where
provisions of the Bill are breached, the perpetrators, if individual,
shall be liable on conviction, “to imprisonment not exceeding a term of
five years, or to a fine not exceeding fifty million naira or both finr
and imprisonment. On the other hand, if the defaulter is a corporate
body, “it shall be liable on conviction, to a fine not exceeding ten
percent of its turnover in the preceding business year.
provisions of the Bill are breached, the perpetrators, if individual,
shall be liable on conviction, “to imprisonment not exceeding a term of
five years, or to a fine not exceeding fifty million naira or both finr
and imprisonment. On the other hand, if the defaulter is a corporate
body, “it shall be liable on conviction, to a fine not exceeding ten
percent of its turnover in the preceding business year.
It
also adds that “where the offence is committed by a bod corporate, each
director of the body corporate shall be liable to be proceeded against
and upon conviction, dealt with as stated in paragraph (a) of
subsection (1) of this section ( imprisonment not exceeding a term of
five years, or to a fine not exceeding fifty million naira or both finr
and imprisonment).
also adds that “where the offence is committed by a bod corporate, each
director of the body corporate shall be liable to be proceeded against
and upon conviction, dealt with as stated in paragraph (a) of
subsection (1) of this section ( imprisonment not exceeding a term of
five years, or to a fine not exceeding fifty million naira or both finr
and imprisonment).
For
disobedience of an order served by the commission, the defaulter, as an
individual, is liable to, upon conviction, imprisonment for a term not
exceeding 3 years, to a fine not exceeding fifty million naira, or both.
For corporate bodies, it would be, on conviction, liable to a fine not
exceeding en percent of its turnover in the preceding business year.
disobedience of an order served by the commission, the defaulter, as an
individual, is liable to, upon conviction, imprisonment for a term not
exceeding 3 years, to a fine not exceeding fifty million naira, or both.
For corporate bodies, it would be, on conviction, liable to a fine not
exceeding en percent of its turnover in the preceding business year.
Also,
each director of the corporate body shall be liable to imprisonment
not exceeding a term of five years, or to a fine not exceeding fifty
million naira or both finr and imprisonment.
each director of the corporate body shall be liable to imprisonment
not exceeding a term of five years, or to a fine not exceeding fifty
million naira or both finr and imprisonment.
The
proposed law also addresses and provides penalties, where relevant, for
issues such as abuse of a dominant position, monopoly, mergers,
manipulation of prices (specific offences against competition),
conspiracy, bid rigging, obsruction of investigation.
proposed law also addresses and provides penalties, where relevant, for
issues such as abuse of a dominant position, monopoly, mergers,
manipulation of prices (specific offences against competition),
conspiracy, bid rigging, obsruction of investigation.
On
consumer rights, it proposes that any person who contravenes any
consumer rights commits an offence and is “liable, upon conviction, to
imprisonment for a term not exceeding five years, or to payment of fine
not exceeding ten million naira or both.
consumer rights, it proposes that any person who contravenes any
consumer rights commits an offence and is “liable, upon conviction, to
imprisonment for a term not exceeding five years, or to payment of fine
not exceeding ten million naira or both.
“In
the case of a body corporate, liable on conviction, to a fine of not
less that one hundred million naira or ten percent of its turnover in
the preceding year, whichever is higher.”
the case of a body corporate, liable on conviction, to a fine of not
less that one hundred million naira or ten percent of its turnover in
the preceding year, whichever is higher.”
Donate to Precision
