New Anti-Trust Law Will Lift Nigeria From Recession – Dogara

by Ike Obudulu Last updated on March 24th, 2017,

New Anti-Trust Law Will Lift Nigeria From Recession – Dogara. The Speaker of the House of Representatives, Hon. Yakubu Dogara, has said that the establishment of the Federal Competition and Consumer Protection Commission as passed by the House will help pull Nigeria out of recession.

Dogara stated that the two economic bills, Public Procurement amendment bill and Competition bill passed by the House last week are designed deliberately to jumpstart the economy to pull Nigeria out of recession.

According to the Speaker:

“competition regulation impacts positively on production of goods and services, they, in themselves, engender competition in an economy. Where you have an economy where key players, all players are not competing but colluding, there is no way that economy can deliver innovation because whether you compete or not, you can still sell your products with some kind of good profit, so you are not bothered about what goes on there.”

Dogara maintained that for any market to deliver innovation, it must be competitive “the essence of this regulation, therefore, is to make our markets competitive in the sense that if you look at our markets, be it the telecommunications or the pay TV market,etc, consumers are dealing with a monopoly price and the reason is that there is no regulation guiding competition in our markets.”

The Speaker stated that when established the Commission will kick-start true competition in the market that may lead to lowering of prices and it will also have the capacity to engender innovation and make our markets competitive.

He also allayed fears that the Bill as passed by the House seeks to punish monopolies or those with considerable market power:

“that is not the essence of the Bill. As a matter of fact, some businesses are better carried out by a monopoly, but what the Bill seeks to achieve is to punish those who have powers of monopoly, or who have considerable market power in any given market, where they abuse that power. if you act in a way that distorts competition in the market, whether you are a monopoly or not, you will be punished and on Consumer Rights, it proposes that anyone who contravenes any consumer rights commits an offence and is liable upon conviction to imprisonment of a term not exceeding 5 years or the payment of a fine not exceeding ten million naira (N10m). Competition naturally results in reducing the cost of products and prices of goods in the market and for some of my colleague lawyers, this provides a wonderful area of the legal practice that can be exploited and for our economy to be modern, we cannot really run away from establishing this law.”

He concluded the proposed law protects consumers as they will take the benefits of competition in the markets which will result in innovation and creation of more jobs because there will be more lines of businesses as innovation takes root in the market.

Nigerian attorneys are salivating over this bill as  it  apparently tries to mirror USA  ANTI-TRUST LAWS. Both M&A activity and antitrust enforcement have been on the upswing in the U.S. in recent years, keeping antitrust lawyers very busy – though federal enforcement activity may dial back under the Trump administration. Changes in the economy, including the rise of the tech giants and the advent of the sharing economy, are raising new challenges and generating interesting debates about what role antitrust has to play, if any, in policing business practices in a fast-changing landscape. The practice of antitrust is also ever more global, thanks to growing international operations and transactions, aggressive enforcers in Europe, and countries like China and now Nigeria are increasingly flexing antitrust enforcement muscle.

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Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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