As a business owner in Nigeria, the process of growing a company often means focusing on winning customers, expanding rapidly, and outpacing competitors, while still unknowingly breaching the law.
If your business is expanding, here are three critical competition law risks you cannot afford to overlook:
1. Price-Fixing and “Gentlemen’s Agreements” with Competitors
This is the most significant risk. If you and a competitor quietly agree on pricing, supply amounts, or market divisions, you could be crossing a sharp legal boundary. Sections 59, 107, and 108 of the FCCPA explicitly prohibit agreements between competitors that fix prices or restrain competition. It does not matter if the arrangement is written, sealed in a boardroom, or merely an understood agreement over drinks; even a nod can be enough to invoke legal consequences.
This issue is far from hypothetical. In 2022, the FCCPC accused several Nigerian airlines of forming a “cartel” to coordinate airfare hikes, referencing these exact sections. The situation intensified in early 2026 when the FCCPC concluded a preliminary investigation and moved to sanction approximately five airlines for colluding to fix prices during the 2025 festive season, when ticket prices reportedly soared to ₦600,000 on some routes. The Commission even warned that passengers might be entitled to refunds.
Similar “mafia-like” pricing practices have been identified in the poultry and packaging sectors. The lesson here is to compete on your own terms, never in agreement with your rivals.
2. Abusing a Dominant Market Position
Becoming the biggest player in your market is not a crime. Abusing that position is. Under Sections 70 and 72 of the FCCPA, a dominant company is one with enough power to act without regard for its customers or competitors. Once you reach that status, the law expects you to act responsibly. Exploitative pricing, unfairly blocking rivals, or imposing unfavorable terms on customers can all be seen as abuse of dominance.
In July 2024, the FCCPC imposed a $220 million fine on Meta (owner of Facebook, Instagram, and WhatsApp) for abusing its dominant market position and treating Nigerian consumers unfairly with its data practices. Meta appealed, but by April 2025, the Competition and Consumer Protection Tribunal upheld the fine and added $35,000 in costs. If a global giant can be held accountable, then certainly a fast-growing Nigerian market leader can be as well. Dominance carries its own responsibilities.
3. Closing a Merger or Acquisition without Approval
When you purchase another business, merge, acquire a controlling stake, or enter certain joint ventures, you may be legally obligated to notify the FCCPC and secure approval before finalising the deal. This requirement falls under Part XII of the FCCPA (Sections 92 to 102), with notification thresholds established by the Commission in Section 93(4). Generally, a transaction requires notification when the combined annual turnover of the involved businesses hits ₦1 billion or the target’s turnover reaches ₦500 million.
Neglecting this requirement, commonly referred to as “gun-jumping”, is a violation of the Act. It can result in administrative penalties of up to 2% of turnover, and in severe cases, the FCCPC may unwind the entire transaction. Recently, in April 2026, the Commission reiterated that merger notification is “not a mere procedural formality” but a substantial legal obligation. In simpler terms: get clearance first, then celebrate later.
Conclusion
Competition law in Nigeria is gaining teeth, and the FCCPC is putting them to use. The encouraging news is that none of these risks necessitate slowing your growth. Instead, they require you to grow wisely, competing vigorously but fairly, leading responsibly, and structuring your deals correctly.
Companies that treat compliance as a strategic priority rather than an afterthought are the ones that scale up without encountering unpleasant surprises. So, consider this question: If the FCCPC were to audit how your business sets prices, forms partnerships, and expands, would you pass the test?
At OAL, we provide expert advice on competition compliance, merger approvals, and regulatory strategy under the FCCPA. If you are scaling your operations and want to ensure you remain on the right side of the law, connect with us.