Nigeria sets up legal framework to address trade, consumer concerns

Nigerian senators on Thursday moved to addressing various consumer, trade concerns and the emergence of cartels and private monopolies, passing a new law which seeks to promote competitive markets in the Nigerian economy and promote economic efficiency.

 

The bill scraps the Consumer Protection Council (CPC) and replaces it with the Federal Competition and Consumer Protection Commission as well as the Competition and Consumer Protection Tribunal.

 

The senate also passed the witness protection programmes bill which seeks to protect witnesses who will provide information or evidence to law enforcement agencies.

 

The bill seeks to ensure that the newly-established Federal Competition and Consumer Protection Commission and Consumer Protection Tribunal, brings about the development and promotion of 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 the country.

 

Presenting the report of the Senate Committee on Trade and Investment, chairman of the panel,  Fatima Raji-Rasaki, said the proposal will aid the nation’s economy by addressing various trade concerns and the emergence of cartels and private monopolies.

 

Although the CPC was established by Act No. 66 of 1992, it commenced operations only in 1999, when its institutional framework was put in place.

 

Section 9(1) of the bill which dwells on Unforeseen Hazard and Duty to Inform Public states that: “It shall be the duty of the manufacturer or distributor of a product, on becoming aware after such a product has been placed on the market, of any unforeseen hazard arising from the use of such product, to notify immediately the general public of such risk or danger and cause to be withdrawn from the market such product”.

 

In like manner, those who issue wrong advertisements will face the music as the bill provides a fine of N50,000.

 

“Any person who issues or aids in issuing any wrong advertisement about a consumer item, is guilty of an olfence and liable On conviction to a fine of N50 ,000 or to imprisonment of five years or both of such fine and imprisonment,” Section 11 of the bill states.

 

Other fines are N10,000 each for making of false entry and violation of Council’s order.

 

It also seeks 0.5percent Profit After Tax of all companies operating in Nigeria as source of funding the Commission.

 

The bill provides that the fund “shall be paid to the Commission annually immediately upon the conclusion of such company’s fiscal or accounting year”.

 

Reacting to the passage of the bill, Senate President Bukola Saraki said the Senate has moved the country one step closer to establishing a legal framework to combat unfair business practices, promote competition and protect the rights of consumers.

 

In a statement on Thursday, he said the new bill will further enforce product safety and consumer protections standards for Nigerian consumes.

 

“When enacted, the new law will make it difficult for unscrupulous actors to collude on pricing, thereby limiting competition and providing little protection for consumers,” the Senate President was quoted as saying.

 

The statement further quoted Saraki, to have said that “The National Assembly has prioritized extending competition and fairness standards to the private sector. When enacted, the new law will protect the interest of persons who establish businesses, consumers and investors.

 

“The new law will encourage innovation, enterprise and wider choices for consumers” added the Senate President.  “We now have a national competition and consumer protection policy that fills the legal and regulatory void that previously existed. This will truly make Nigeria a healthier environment for ease of doing business and consumer purchasing.”

 

It could be recalled that the House of Representatives passed a corresponding legislation last March.

 

With the passage, the two chambers must now harmonize their respective bills, then pass it again through both houses.  After that the legislation will be sent on to the President for his signature.

The Federal Competition and Consumer Protection Bill is one of the 13 high priority economic reform bills currently before the National Assembly for passage.

 

Others are: National Inland Waterways Authority Bill, Federal Roads Bill, National Roads Funds Bill, National Transport Commission Bill, Nigerian Ports and Harbours Authority Bill, Petroleum Industry Governance Bill, and Nigerian Postal Commission Bill.

Also included are: Nigerian Railway Authority Bill, National Development Bank Bill, Companies and Allied Matters Act (CAMA) (Amendment) and Investment and Investment and Securities Act (Amendment) Bill, Secured Transactions in Moveable Assets Bill and Independent Warehouse Regulatory Bill.

Of the 13 economic bills, only one: Secured Transactions in Moveable Assets Bill, has been signed into law by the Acting President, Yemi Osinbajo.

 

OWEDE AGBAJILEKE, Abuja