The Federal Competition and Consumer Protection Commission has warned firms, legal advisers, and transaction parties against breaching statutory requirements governing mergers and acquisitions in Nigeria.
This was contained in a statement issued by the Director of Corporate Affairs, Ondaje Ijagwu.
The Commission said the warning is necessary to ensure compliance with the provisions of the Federal Competition and Consumer Protection Act, 2018.
What the commission is saying
The FCCPC reiterated that it has the legal authority to review, approve, approve with conditions, or prohibit mergers and qualifying business combinations once notified.
- “It explained that this framework is designed to preserve fair competition, prevent harmful market concentration, and protect the public interest in the Nigerian economy.
- FCCPC noted that any transaction meeting the thresholds set out in the applicable Notice of Threshold for Merger Notification, issued pursuant to Section 93(4) of the FCCPA, must be notified to the Commission for prior review and approval before implementation.”
- According to the Commission, this applies to a wide range of transactions, including share acquisitions, asset purchases, joint ventures, and other arrangements that qualify as mergers under the law.
The FCCPC noted that the notification process allows it to assess whether proposed transactions could substantially reduce competition or raise public interest concerns in any relevant market.
More insights
The Commission encouraged firms and their advisers to engage early in the transaction process, particularly where deals may require regulatory approval.
- It stated that early engagement, including pre-notification consultations, can help provide clarity, improve review timelines, and ensure compliance with regulatory requirements.
- The FCCPC also warned that failure to notify qualifying transactions constitutes a violation of the law and may attract administrative penalties or enforcement actions.
It advised stakeholders to take all necessary steps to comply with merger notification requirements before proceeding with any transaction.
What you should know
Nigeria has recorded a wave of mergers and acquisitions in the past few months. In the startup ecosystem, five major deals have occurred.
Flutterwave acquired Mono in an all-stock transaction valued between $25 million and $40 million to strengthen its financial infrastructure capabilities, while Paystack moved to acquire Ladder Microfinance Bank, expanding beyond payments into full-stack financial services.
- Moniepoint acquired Orda, a cloud-based restaurant management platform, to deepen its expansion into Africa’s food and retail ecosystem. Trove Finance acquired UCML Securities Limited, a move that transformed the investment platform into a SEC-licensed broker, allowing it to take direct control of trade execution, compliance, and regulatory processes. Andela acquired Woven as part of its efforts to expand its talent and engineering network.
- Legend Internet Plc and Spectranet Limited announced plans to merge operations, a move aimed at creating one of Nigeria’s largest broadband providers with an estimated N80 billion capital base.
Zenith Bank also completed the acquisition of Kenya’s Paramount Bank, securing 100% ownership after obtaining regulatory approvals from both Nigerian and Kenyan authorities, becoming the fourth Nigerian bank to establish operations in Kenya.
