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PROCESS OF EVOLUTION OF THE COMPETITION LEGISLATION IN NIGERIA. A Paper Presented By: Leonard O. Ugbajah at the Final Workshop for the CUTS 7Up4 Project In West Africa held in Dakar, Senegal, 6-7 th August, 2010. lennyo2@yahoo.com , basileajuris@yahoo.com. Outline. Introduction
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PROCESS OF EVOLUTION OF THE COMPETITION LEGISLATION IN NIGERIA A Paper Presented By: Leonard O. Ugbajah at the Final Workshop for the CUTS 7Up4 Project In West Africa held in Dakar, Senegal, 6-7th August, 2010. lennyo2@yahoo.com, basileajuris@yahoo.com.
Outline • Introduction • The economy… • Making a transition- the challenges • Competition law in Nigeria-the Egg that never hatches… • Understanding Government bureaucracy- a hydra or an octopus? • Major actors and vested interests • Towards an inclusive stakeholders-driven approach • Mobilising political support… • All or nothing? What options for developing countries
1. Introduction… The economy • Oil and gas dependent • Relatively strong industrial base • Agriculture is very important too • Relatively strong financial services sector • Same for telecommunications and IT generally • Retail trading • Annual growth rate of about 6% • Annual GDP of about… • Per capita income of about… • Enormous potential human capital- population of about 150 million (144.7 million by the 2006 Census)
2. Making a transition… • Market Reforms in the absence of a competition policy/law – telecoms, power, oil and gas, broadcasting- prevalence of sector specific approach. • Negotiating a difficult bend • The challenge of changing cultural attitudes • Technical capacity challenges-sound policies, effective implementation, institutional integrity. • Dealing with political interference -let’s kill all the politicians? • Competition policy and law was on the table from the onset.
3. The egg that never hatches… • Multiple Bills, lack of co-ordination… • The Federal Competition Commission Bill, 2002 • The Nigerian Trade and Competition Commission (NTCC) Bill, 2005 • The Federal Competition and Consumer Protection (FCCP)Bill, 2009 • Members Bills in the National Assembly
4. Understanding Government bureaucacry… • A hydra or an octopus? • The Executive • MDAS- FMC&I, BPE, MoJ, NIPC, NCC, CPC, etc • The Legislature (National Assembly) • The Senate • The House of Representatives • The Committees • The Judiciary. • The Process of law-making in Nigeria
5. Major actors and vested interests • Government Actors- what do they really want? • The Federal Ministry of Commerce and Industry (FMC&I) • The National Council on Privatisation(NCP) /Bureau of Public Enterprise(BPE) • The Ministry of Justice (MoJ) • The Consumer Protection Council (CPC) • Others. • Non-state Actors- little appreciation and interest • Private sector- formal and informal sectors • Civil society , consumer organisations • The mass media • Labour movements • The Competition Law Committee of the Nigerian Bar Association
6. Towards an inclusive stakeholders-driven approach • What needs to be done- • Ironing out the divergent positions of MDAs • Well defined pro-development policy objectives while not sacrificing core principles and international best practices. • Convincing the business community and consumer organisations of the importance of competition law. • Building a private sector driven coalition for advocacy.
7. Mobilising Political Support • Advocacy! Advocacy!! Advocacy!!! • How? • Media trainings/sensitisation • Sensitisation/lobbying of the law makers and their support staff – ‘targeting’ may be utilised to build a core of committed advocated within the legislature. • By whom? • The private sector driven coalition. • Donor support may be needed • Vested interests…the hawks wont let go easily. • Politicians are businessmen- politics often triumphs economy! • Vested business interests have well oiled lobbying machinery. • But evidence based and strategic advocacy can swing the tide.
8. All or Nothing? Options for developing countries • Using sector regulators to enforce competition law in the absence of an economy-wide legislation and authority. • The Nigerian experience. • Investment and Securities Act (ISA) of 2007 • Nigerian Communications Commission (NCC) Act of 2002 and the Competition Regulations of 2008? • Nigerian Energy Regulatory Commission (NERC) Act of 2005 • The merits and demerits. • One step at a time, we’ll get there!
