The challenges of anti-competitive practices and consumer protection in Nigeria

• Author: Enakireru, E.O.
• DOI: https://doi.org/10.47348/JCCL/V7/i2a8
• Published date: 09 November 2022
• Date: 09 November 2022
• Citation: (2021) 7(2) JCCL&P 152
• Pages: 152-167

https://doi.org/10.47348/JCCL/V7/i2a8

152

THE CHALLENGES OF ANTI-

COMPETITIVE PRACTICES AND

CONSUMER PROTECTION IN

NIGERIA

ERIC OMO ENAKIRERU*

Senior Lecturer, Department of Jurisprudence and International Law,

College of Law, Western Delta University, Oghara, Delta State, Nigeria

OGAGA WILSON EKAKITIE†

Senior Lecturer, Department of Jurisprudence and International Law,

College of Law, Western Delta University, Oghara, Delta State, Nigeria

Abstract

This article critically examines the concepts and the challenges of price

mechanisms, anti-competitive practices and consumer protection

in Nigeria, and considers ways of promoting and protecting the

interests of consumers in respect of products and services. The article

evaluates and defines the concept of price mechanisms, and the

concept of the consumer who needs to be protected. It discusses anti-

competitive practices, such as monopolies, mergers and acquisitions,

and restrictive trade practices, resale price maintenance agreements,

misleading advertising, false sales and market values. It considers

the protection of consumers and the legal frameworks applicable

to the subject. In conclusion, the article recommends appropriate

measures and a proactive, pragmatic approach to tackling the menace

of false market sales and restrictive trade practices by calling on

stakeholders and the government to regulate monopolies, mergers

and uncompetitive business practices which are detrimental to the

interests of the consumer. It calls for controls and restrictions on

unfair trade practices and appropriate sanctions so that those who

persistently prejudice consumers in this way are brought to book.

Keywords: price, anti-competition, consumer protection law

* LLB (University of Benin) LLM (University of Benin) PhD (Igbinedion University,

Okada).

† LLB (Edo State University, Ekpoma) LLM (Delta State University Delsu) PhD

(Igbinedion University, Okada).

(2021) 7(2) JCCL&P 152

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153

THE CHALLENGES OF ANTI-COMPETITIVE PRACTICES AND

CONSUMER PROTECTION IN NIGERIA

https://doi.org/10.47348/JCCL/V7/i2a8

I INTRODUCTION

Price determination by free market forces called price mechanisms

is usually regarded as the ideal situation.11 This allows for a laissez-

faire approach. A free market economy allows for competition. A

free enterprise economy implies competition, and competition is the

great regulatory force that establishes control over the economy. Free

enterprise enhances the economic situation of any given society and

can lead to the best allocation of resources.2 Thus, the Australian

Trade Practices Tribunal in Re Queensland Co-operative Milling

Association noted that ‘competition is a very rich concept containing

within a number of ideas and may be valued for many reasons as

serving economic, social and political ends’.3 However, firms that

produce consumer goods and services often deviate from the ideal

situation and engage in practices that are more monopolistic.

In an attempt to maximise profit and market power, businesses

often adopt trade practices and business methods that reduce or

eliminate competition in the market and exploit consumers. These

practices often interfere with the smooth running and efficiency

of the market economy and obstruct the flow of capital and other

resources into the production process. These practices tend to lead to

the manipulation of prices and a deterioration in product quality, a

reduction in capital development and the exploitation of customers.

Customers need protection not only from monopolies and restrictive

trade practices (anti-competitive practices) but also from deceptive

methods and unfair business practices.

A price mechanism is defined as the system of price determination

and the allocation of goods by free market forces.4 These are usually

determined by the forces of demand and supply. A free market

economy is characterised by perfect competition. The free trade

approach requires the government, including companies, to address

competition in the marketplace of a free market economy, and not

in anti-dumping proceedings or behind a trigger mechanism. An

opposing argument holds that free trade is not possible where some

of the players receive unfair advantages and that real competition

exists only when all players are operating under the same rules.5

1 E A Agbale Esq ‘Regulatory scheme and consumer protection: A critique’ 1993

Journal of Edo State University Law Students’ Association 32.

2 Ibid.

3 Re Queensland Co-operative Milling Association 8 ALR (1975) 481 at 514.

4 Webster’s Third New International Dictionary of the English Language (2002) 1799.

5 J M Nolan-Haley ‘Trigger price mechanism: Protecting competition or compe-

titors’ (1980) 13(1) Journal of International Law and Politics 67.

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