Price Fixing in Nigeria: Risks, Rules, Compliance & Enforcement

1. Why Fair Competition Matters to Consumers and the Economy?

In an economy, market competition is not merely desirable; it is essential. It fosters innovation, drives economic growth, and ensures that consumers are offered a variety of quality products at competitive prices. Issues arise when businesses collude to fix prices, which undermines these benefits.

The Federal Competition and Consumer Protection Commission, in an official communiqué published on the 3rd of September 2024, described price fixing as a phenomenon that “occurs when competitors or market associations, without their own products, collude to set prices”.1

The resulting impact of market collusion is particularly damaging in an inflation-prone economy like Nigeria’s. According to recent CPI data published by the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate stood at approximately 15.38% as at March 20262. In this context, price fixing becomes an accelerant; from essential commodities like food, cement, pharmaceuticals and transportation to digital services, collusion among competitors removes the basic market safeguards and ultimately affects consumers who are left with inflated prices, limited market choice, and deteriorating economic prospects. This is no longer an abstract concern; it reflects the lived reality of many Nigerians who pay more for essential goods and services with few or no viable alternatives. The importance of fair competition and its economic implications for consumers and the wider economy now becomes paramount, reinforcing that a thriving economy is, in part, defined by the presence of a free and competitive market.

2. FCCPA and FCCPC: The Law and the Watchdog

The Federal Competition and Consumer Protection Act 2018 (“FCCPA”) is the primary legislation regulating competition and consumer protection. It establishes a robust framework for maintaining market integrity and is administered by the Federal Competition and Consumer Protection Commission (“FCCPC”).

The FCCPA applies to all commercial activities within or having effect in Nigeria and binds both private and public enterprises. Section 1(a)–(e) of the FCCPA sets out its core

objectives, including promoting competitive markets and economic efficiency, protecting consumer welfare, ensuring access to a wider variety of quality products at competitive prices, prohibiting restrictive or unfair business practices (including abuse of dominance), and contributing to sustainable economic development.

The FCCPA, by section 17(a), confers on the FCCPC a wide range of responsibilities, including investigative and enforcement powers to tackle anti-competitive conduct. These include the power to summon and examine witnesses, conduct searches, impose administrative penalties, and initiate proceedings before the Competition and Consumer Protection Tribunal. 3

Historically, there has been a tendency among businesses to treat pro-competitive regulation as theoretical or academic. That would be ill-advised in light of the current competition framework in Nigeria. The FCCPC in recent times has demonstrated its willingness to act through investigations, compliance directives, and enforcement measures, with recent examples of the Commission clamping down on conduct amounting to market collusion and price fixing. In July 2023, the FCCPC issued a Cease & Desist Order against the Association of Mobile Money & Bank Agents (AMMBAN) and affiliated PoS operators for jointly deciding to standardize withdrawal fees.4 It warned that violating this order could lead to fines of up to ₦10 million for corporate entities and ₦1 million, as well as three months' imprisonment, for individuals. The message is therefore clear from the law and the regulator that collusion will not be tolerated, and the consequences for those who disregard the law are severe. 

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