FCCPC warns companies against unapproved mergers, signals tougher enforcement

By Ezurike Ugochukwu 

The Federal Competition and Consumer Protection Commission has issued a strong warning to companies, legal advisers, and transaction stakeholders against completing mergers and acquisitions without prior regulatory approval, stressing that violations will attract sanctions.

In a statement released on Tuesday, the commission said all transactions that meet the prescribed thresholds under the Federal Competition and Consumer Protection Act 2018 must be formally notified and cleared before implementation.

The notice, signed by the Head of the Commission’s Mergers and Acquisitions Department, Eme David-Ojugo, clarified that the requirement applies broadly to various forms of business combinations, including share and asset acquisitions, joint ventures, and other arrangements that fall within the legal definition of a merger.

According to the commission, the notification regime is critical to its mandate of assessing whether proposed transactions could substantially reduce competition or raise broader public interest concerns within Nigeria’s markets.

It explained that the process also enables regulators to maintain oversight of market structures and competitive dynamics across key sectors of the economy.

The warning comes at a time of increased dealmaking activity in Nigeria, as companies pursue mergers, partnerships, and restructuring strategies in response to macroeconomic pressures and evolving regulatory expectations.

To ensure compliance and reduce delays, the FCCPC urged businesses and their advisers to engage the commission early in the transaction process, including through pre-notification consultations where necessary.

Such proactive engagement, it noted, enhances regulatory clarity, shortens review timelines, and helps parties meet all legal requirements before concluding transactions.

The commission emphasised that failure to notify a notifiable transaction constitutes a breach of the law and would attract stiff penalties and enforcement actions, signalling a stricter stance in monitoring Nigeria’s mergers and acquisitions landscape.

Reaffirming its mandate, the FCCPC said it remains committed to promoting fair competition, protecting consumers, and fostering a transparent and efficient business environment, while encouraging stakeholders to seek guidance through its official channels where necessary.