Strengthening Constituencies for Effective Competition Regimes in Select West African Countries ( CUTS 7Up4 Project ) INTERIM PROJECT REVIEW MEETING 29-30 July, 2009 at Senegambia Beach Hotel, Banjul, The Gambia Country Research Report (CRR) - DRAFT COMPETITION REGIME SCENARIO IN NIGERIA
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Strengthening Constituencies for Effective Competition Regimes in Select West African Countries
(CUTS 7Up4 Project)
INTERIM PROJECT REVIEW MEETING
29-30 July, 2009 at Senegambia Beach Hotel, Banjul, The Gambia
Country Research Report (CRR) - DRAFT
COMPETITION REGIME SCENARIO IN NIGERIA
UGBAJAH, Leonard – Consultant to CEON
Professor, AROMOLARAN, Adebayo B. – Consultant to CEON
ADEDEJI, Babatunde Abiodun CStat – C-G, CEON
Consumers Empowerment Organisation of Nigeria – CEON
(Formerly, Consumer Affairs Movement of Nigeria – CAMON)
It is bordered to the north by the Republics of Niger and Chad. It shares borders to the west with the Republic of Benin, while the Republic of Cameroun shares the eastern borders right down to the shores of the Atlantic Ocean which forms the southern limits of Nigerian Territory. The about 800km of coastline confers on the country the potentials of a maritime power. Land is in abundance in Nigeria for agricultural, industrial and commercial activities.
2.1.2 Structural Adjustment Programme (SAP)
The major objectives in line with the SAP policy thrust included:
These list of policies and programs are summarized as follows:
The broad objectives of agricultural policy in Nigeria over the past 2
decades have been the:
Agricultural contribution to economic activity
The agriculture sector plays a significant role in the Nigerian
The Federal Ministry of Industry's policy objective is to
transform the Nigerian economy from "its rural and
agrarian form to a modern and competitively
industrialized one". This is to be pursued by, inter alia,
encouraging the private sector to play a pivotal role;
providing services for the training and development of
indigenous skills and manpower; and financial support.
Nigeria's current industrial policy thrust is anchored on a
guided deregulation of the economy and Government's
disengagement from activities which are private-sector
oriented, leaving Government to play the role of facilitator,
concentrating on the provision of incentives policy and
infrastructure that are necessary to enhance the private
sector's role as the engine of growth.
The industrial policy is intended to:
2.4.2. Trade-Specific Measures Scheduled for Implementation
The measures include the following:
established the NIPC as the successor to the Industrial
Development Co-ordination Committee (IDCC).
The public sector reform agenda focuses on the following:
To enhance job opportunities in the country, the Nigerian
Federal Executive Council (FEC) has approved a new
National Employment Policy.
The Nigeria Government under the then leadership of President
(General) Ibrahim Badamosi Babangida, in complying with the
UN General Assembly Guidelines on Consumer Protection (Res.
39/248 of 1985) which it ratified as a member, enacted the
Consumer Protection Council Act No. 66 of 1992 on 23rd day of
November 1992, to Protect Nigerian consumers from this social
Prominent among these consumer legislations are:
Despite this statutory protection framework, the level of
practical protection has remained rather low. This is because the
laws are yet to take care of some vital aspects of consumer
As a prerequisite to the Nigerian Competition Regimes, Government have started with sector-specific regulatory laws with the aim of encouraging competition in some specific sectors of the Economy.
Some of the sectors with regulatory laws are:
Communication, Power, Oil & Gas, Financial Services, Transport, Health, Tourism, and Education.
Bills Prepared by Different Bodies But Never Passed in the
Parliament into Acts.
Efforts to reconcile/harmonized the two versions of the bills have not been successful up till date.
3.5.1. Political Will of the National Assembly
Some of these laws/Bills are:
1. AWARENESS ISSUES distortions at all levels
Twenty-six percent (26%) of the respondents answer YES that there are rules, regulations or laws to check anti-competitive practices in Nigeria. 31% answer NO while 43% DON’T KNOW.
2. distortions at all levelsPREVALENCE OF ANTI-COMPETITIVE PRACTICES
3. distortions at all levelsPERCEPTION ON LEVEL OF COMPETITION
3.1. ASSESSMENT ON LEVEL OF COMPETITION
3.2. COMPETITION ASSESSMENT IN SELECT SECTORS distortions at all levels
4. PERCEPTION ON ENFORCEMENT distortions at all levels
5. ROLES OF MEDIA distortions at all levels
“The new conventional wisdom is that network utilities should be unbundled, with the potentially competitive network services under separate ownership from the natural monopoly network, so that the network owner has no incentive to favour its own service provider” (David Newbery: The Relationship between Regulation and Competition Policy for Network Industries,2006)