Consumer Rights And Price Surges

Lawyard is a legal media and services platform that provides…

As Nigeria began to ease her lockdown measures in May, the average citizen has suddenly found himself trying to paddle safely against a wave of inexplicable hike in prices of goods and services in the country. In Lagos State, for instance, the price of commercial transport services had skyrocketed by at least 150 per cent.

This development has left the many questioning the laws designed to check hikes in the prices of goods and services. Do consumers in Nigeria have rights like citizens of other countries? Assuming the answer to the above question is in the affirmative, which statutory body is saddled with the duty of protecting such rights? And how does an aggrieved person pursue and enforce his consumer rights when they are perceived to have been infringed by others?

As a result of the restriction of movement imposed by the Federal government of Nigeria during the month of April 2020 in Abuja – the Federal Capital Territory (FCT), and in Lagos and Ogun States, non-essential workers and organizations were compelled to stay at home during the period under reference. However, many Nigerians were rudely shocked and harassed with outrageous electricity bills for power they did not consume upon their return to their various offices and businesses. One of such high-profile persons is a former Minister of Communications, Ms Omobola Johnson. Venting her anger, she tweeted via her Twitter handle on 21st May 2020 that she returned to her office “after 6 weeks of lockdown to see April bill from @EKEDC for N29,000. She also mentioned in a series of tweets that there was a sharp increase in her monthly bill, and her electricity was disconnected because she refused to pay. This experience is by no means unique to her as there is a litany of such tales by Nigerian Consumers who have had similar or even worse experiences in the hands of the electricity distribution companies.

The Legislation

In Nigeria, there is the Federal Competition and Consumer Protection Act, 2018, (FCCPC or the Act); a law enacted to engender the development and promotion of fair, efficient and competitive markets in the Nigerian Economy to facilitate access by all citizens to safe products and secure the protection of rights for all consumers in Nigeria; and for related matters.

The intent and purpose of the Act is succinctly stated in the in its explanatory memorandum which states:

“This Act establishes the Federal Competition and Consumer Protection Commission and the Competition and Consumer Protection Tribunal for the promotion of competition In Nigerian markets at all levels by eliminating monopolies, prohibiting the abuse of dominant market position and penalizing other restrictive trade and business practices.”

The Act contains 168 sections and is divided into XVIII parts. It repealed and replaced the Consumer Protection Act. Section 2(1) of the Act captures the scope of the legislation. It provides: The Act “applies to all undertakings and commercial activities within, or having effect within, Nigeria.”

It is interesting to note that Part III (Sections 17 & 18) contains the functions and powers of the Commission, and this includes but it is not limited to, administration and enforcement of the Act; investigation of anti-competition and anti-consumer protection activities; initiation and review of broad-based economic policies and activities and advising the federal government; develop national norms and standards for goods and services; promotion and protection of consumer interests; authorize, prohibit or approve mergers where notice is received; apply sanctions where necessary; elimination of hazardous goods and services and so on. Proper examination of these two sections indicates that the Act vests sweeping regulatory powers on the commission in almost all facets of the Nigerian economy. More than anything else, the key take-away from a combined reading of sections 17 and 18 is that the Act is consumer centred.

The Consumer

A “consumer” is defined by the Act as any person “(a) who purchases or offers to purchase goods otherwise than for the purpose of resale but does not include a person who purchases any goods for the purpose of using them in the production or manufacture of any other goods or articles for sale; or (b) to whom a service is rendered.” This definition shares similarity with Section 137(2) of The fair Trading Act, 1973 (UK) where same is defined as “any person for whom goods are sought to be supplied in the course of a business carried on by the person supplying or seeking to supply them and who does not receive or seek to receive the goods or services in the course of a business carried on by him.”

As already hinted in the explanatory memorandum to the Act, it is not surprising that Part VIII (Sections 59-69) prohibits restrictive agreements. Thus without prejudice to sections 60 and 68 of the Act which vests the commission with the power to authorize some agreements with restrictive clauses and other notable exceptions; acts and agreements containing exclusionary provisions and/or in restraint of competition, withholding of products from a dealer by a supplier and minimum resale price maintenance are all prohibited. Also, Part IX, particularly section 72 prohibits the abuse of dominant position; while section 73 lists the consequences in the event of any abuse.

Although Parts X, XII, XIII, XIV & XVII of the Act contain useful provisions on price regulation, price mergers, regulated industries, specific offences against competition and miscellaneous matters respectively; of greater and specific interest to the ordinary man are Parts XV – consumers rights (Ss. 114-133), XVI – duties of manufacturers, importers, distributors and suppliers of goods and services (Ss. 134 – 145), and Part XVII – enforcement of consumers’ rights (Ss. 146-155).

The rights of a consumer as enshrined in the Act include:

Right to Value for Money.
Right to Safety from hazardous goods and/or services.
Right to Information to enable consumers make informed choices and protect them from misleading information and advertisement.
Right to Choose from a variety of quality products at competitive price without compulsion to buy goods or services.
Implied Warranty of Quality.
Right to Consumer Education.
Right to Redress for unsatisfactory products and services. In the appropriate circumstance, a consumer is entitled to repair, replacement or refund.
Right to Representation at for a where policies, regulations affecting consumers are made.

The manufacturers/ supplier’s obligations to a consumer includes: duty to label goods properly

(S.134), duty to withdraw hazardous goods from the market and circulation
(S.145), liability for defective goods
(S.136), liability for misrepresentation
(S.140), liability for breach of implied obligation imposed by law
(S.138), and a liability arising from sale or supply of goods NOT to be excluded
(S.137). A combined reading of these provisions clearly indicates that the Act is consumer centric. It plugged the tendency of businessmen to hide under any contract or law avoid liability from acts inimical to statutory rights of a consumer.

How Does The Consumer Enforce His Right?

The aggrieved party (complainant) is expected to, as a condition precedent, engage the offending party. However, where the complainant, is dissatisfied with the outcome of the complaint, he may file a further complain with the FCCPC stating the following:

The particulars of the party complained against.
The amount involved.
The expected redress.

A complaint above must be accompanied with a proof of transaction. This complaint may be lodged electronically vide the commission’s website or email, or manually. An aggrieved person may also elect to seek redress in a court of law or other recognized bodies without recourse to the FCCPC.

There are also other general and sector-specific laws and agencies which exist for the regulation of goods and services as well as protection of consumers’ interest in Nigeria. These include:

The Price Control Act 1977
The Nigerian Electricity Regulation Commission
The Standard Organization of Nigeria (SON)
The Nigerian Communications Commission (NCC)
The Utilities Charges Commission (UCC) Act,
The Quality of Service Regulation,
The Nigerian Communications Commission Dispute Resolution Guidelines 2004
National Agency For Food Drugs Administration And Control (NAFDAC)
Counterfeit and Fake Drugs and Unwholesome Processed Foods (Miscellaneous Provisions) Act, amongst many others.

No doubt, the Act may not have ready answers for all the questions of consumers in this country, but the FCCPC is empowered to make further regulations to give effect and meaning to the spirit and letters of the Act. Nigerians are therefore expected to set the wheel of the law on motion by reporting persons and organizations who are responsible for entrenching undue suffering on the ordinary citizenry through the unjustified hike in prices of goods and services. The Act has made the consumer a king. This is a good time for Nigerian Consumers to exercise their power.

Anselm Okoli Esq is a legal practitioner based in Lagos, Nigeria. He can be reached at anselmemeka@gmail.com.

Leave a Reply Cancel reply