Competition watchdog signals tougher enforcement as deal activity surges across Nigeria’s corporate landscape…..
Nigeria’s competition regulator, the Federal Competition and Consumer Protection Commission, has issued a stern warning to companies, legal advisers, and dealmakers over compliance with merger and acquisition rules.
In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission stressed that all qualifying transactions must undergo proper regulatory review before they are executed.
The FCCPC reiterated its statutory powers under the Federal Competition and Consumer Protection Act, noting that it has the authority to approve, reject, or impose conditions on mergers and business combinations.
According to the Commission, this framework exists to:
- Safeguard fair competition
- Prevent excessive market dominance
- Protect broader public interest
It emphasized that any transaction meeting the prescribed thresholds must be formally notified for review before implementation.
This requirement cuts across a wide range of deals, including share acquisitions, asset purchases, joint ventures, and other arrangements that qualify as mergers under Nigerian law.
At the heart of the FCCPC’s warning is concern over market distortion. Without proper oversight, mergers could reduce competition, limit consumer choice, or create monopolistic structures in key sectors.
The Commission explained that its review process is designed to identify such risks early and ensure that transactions do not harm the competitive landscape.
Rather than waiting until deals are finalised, the FCCPC urged companies and their advisers to engage early in the process.
Pre-notification consultations, it said, can:
- Clarify regulatory expectations
- Speed up approval timelines
- Reduce the risk of compliance breaches
The message is clear, regulatory alignment should be built into deal planning, not treated as an afterthought.
The warning comes at a time when Nigeria is experiencing a noticeable uptick in mergers and acquisitions, particularly in the tech and financial services sectors.
Recent deals highlight the trend:
- Flutterwave acquired Mono
- Paystack moved to acquire Ladder Microfinance Bank
- Moniepoint acquired Orda
- Trove Finance acquired UCML Securities Limited
- Andela acquired Woven
Beyond startups, larger corporate consolidations are also underway. Legend Internet Plc and Spectranet Limited are planning a merger aimed at creating a major broadband player, while Zenith Bank has completed its acquisition of Paramount Bank.
With deal activity accelerating, the FCCPC made it clear that ignoring notification requirements is not an option.
Failure to comply, the Commission warned, could lead to:
- Administrative penalties
- Regulatory sanctions
- Possible reversal or nullification of transactions
The latest directive underscores a broader shift toward stricter enforcement in Nigeria’s competition space.
As more companies pursue expansion through mergers and acquisitions, the FCCPC is drawing a firm line, growth must not come at the expense of fair competition.
For dealmakers, the takeaway is straightforward: regulatory compliance is no longer procedural, it’s central to getting deals done.
