In a landmark legal battle that could reshape Nigeria’s regulatory landscape, the Federal High Court in Lagos has ruled in favor of the Federal Competition and Consumer Protection Commission (FCCPC), affirming its authority to investigate MTN Nigeria for potential anti-competitive practices. This ruling, delivered on February 7, 2025, underscores the FCCPC’s expanded mandate to ensure fair competition and protect consumers across all sectors, including telecommunications.
The case centered around a challenge brought by Emeka Nnubia, a shareholder in MTN Nigeria, who sought to prevent the FCCPC from investigating the telecommunications company. Nnubia, a legal practitioner, contended that the Nigerian Communications Commission (NCC) alone held jurisdiction over the telecom industry and that the FCCPC’s investigation could potentially breach data protection laws.
However, the Federal High Court dismissed this argument, clarifying that the FCCPC’s authority, granted under the Federal Competition and Consumer Protection Act (FCCPA) of 2018, supersedes conflicting provisions in older laws, including the Nigerian Communications Act (NCA) 2003. The ruling marks a significant development in the interpretation of Nigeria’s competition and consumer protection laws.
A New Era for Competition Regulation
The court’s decision has far-reaching implications for Nigeria’s regulatory framework. Section 90 of the Nigerian Communications Act (NCA) 2003 assigns the NCC jurisdiction over telecom matters, but the court ruled that Section 104 of the FCCPA 2018, being the more recent legislation, now holds greater weight. According to Justice F.N. Ogazi, who presided over the case, the court interpreted the laws in a way that allows for shared jurisdiction between the FCCPC and NCC over competition issues within the telecommunications sector.
This ruling clarifies that the FCCPC, in collaboration with the NCC, can regulate competition in the telecom industry, fostering a more coordinated regulatory approach. By sharing oversight responsibilities, the agencies can focus on curbing anti-competitive practices while protecting consumer interests in the rapidly growing telecom sector.
Court Reinforces FCCPC’s Powers and Independence
Justice Ogazi also emphasized that the FCCPC acted within its statutory rights when it issued a summons to MTN Nigeria. The commission had initiated an investigation into MTN’s operations, seeking to determine whether the telecom giant was involved in any activities that violated the principles of fair competition.
In his judgment, Justice Ogazi stated that there was no legal ground to suggest that the FCCPC’s investigation violated data protection laws. The court found that the FCCPC did not request any personal data in its inquiries, thus complying with the Nigeria Data Protection Act of 2023 and the NCA 2003. This was a key issue in the case, as Nnubia had argued that the FCCPC’s actions could expose sensitive data.
The judgment further confirmed that the FCCPC’s ability to work independently in regulating competition and consumer protection was paramount. The court rejected the argument that sector regulators such as the NCC needed to sign a Memorandum of Understanding (MoU) with the FCCPC before the commission could carry out its functions.
The Wider Impact on Nigerian Business Practices
This case holds great significance beyond MTN Nigeria. By reinforcing the FCCPC’s power to regulate competition across all industries, the ruling sets a precedent for how the commission can enforce fair business practices in Nigeria. The court’s decision is a clear message that regulatory authorities cannot be stymied by legal challenges aimed at limiting their functions.
Nigerian businesses, particularly in the telecom, energy, and financial sectors, are expected to feel the effects of this ruling. With the FCCPC’s broad authority to regulate market practices, companies will need to ensure greater compliance with competition and consumer protection laws or risk facing investigations and penalties.
In a statement following the court’s decision, the FCCPC expressed its satisfaction with the ruling, reiterating its commitment to protecting consumers and promoting competitive markets. “This decision further affirms our statutory mandate to safeguard Nigerian consumers from anti-competitive practices and market manipulation. The commission is dedicated to upholding a fair, transparent, and competitive business environment,” said a representative of the FCCPC.
A Bold Step Toward Regulatory Coordination
Industry experts have praised the court’s ruling as a bold step toward better coordination between regulatory agencies. According to legal analyst Dr. Adebola Akinyemi, “This ruling paves the way for a more cohesive regulatory environment, where agencies like the FCCPC and NCC can work together to protect the integrity of the market. It also reflects global trends where consumer protection bodies and sector regulators collaborate to ensure that businesses operate fairly.”
However, some industry players have raised concerns that this expanded power could lead to regulatory overlaps, particularly in the telecom sector, which is already governed by multiple bodies. But as the court noted, this kind of coordination is common in many jurisdictions worldwide, where regulators pool resources to tackle complex issues such as anti-competitive behavior.
The ruling also touched on the doctrine of separation of powers, with the court ruling that any attempt to curtail the FCCPC’s functions would violate this principle. This aspect of the judgment further strengthens the commission’s position in Nigeria’s regulatory landscape, asserting that no individual or entity should be allowed to obstruct the commission’s legally empowered duties.
As MTN Nigeria faces increased scrutiny, it remains to be seen how the company will respond to the ongoing investigation. The telecom giant, which serves millions of Nigerians, has yet to issue a public statement on the court ruling, though it is expected to continue cooperating with the FCCPC’s inquiry.
