Regulatory Framework For Consumer Protection In Nigeria; The Way Forward In Protecting The Rights Of Consumers In Nigeria

INTRODUCTION

Consumer protection is a major component of any economy. With the increasingly complex nature of commercial activities and financial transactions in Nigeria, there is a need to balance the interests of businesses while adequately protecting the rights and welfare of consumers. Over the years, consumers have been exposed to several risks including unsafe products, misleading advertisements, unfair and exploitative trade practices etc. In a bid to address these challenges faced by consumers and promote access to safe and quality goods and services, the legal framework for consumer protection has evolved and undergone significant reforms. Some applicable laws include the Sale of Goods Act 1983, National Agency for Food and Drugs Administration and Control Act (NAFDAC) Act 2004 and the Federal Competition and Consumer Protection Act (FCCPA) 2018, which is the principal legislation governing consumer protection in Nigeria.

This article examines the regulatory framework for consumer protection in Nigeria, with particular emphasis on the provisions of the FCCPA, and the mechanisms established for the enforcement of consumer rights.

CONSUMER RIGHTS UNDER THE FEDERAL COMPETITION AND CONSUMER PROTECTION ACT (FCCPA)

The enactment of the Federal Competition and Consumer Protection Act (FCCPA) 2018, has created a major milestone in the protection of consumers in Nigeria, especially with the establishment of Federal Competition and Consumer Protection Commission (FCCPC or Commission) which is the primary regulator under the Act.¹

The FCCPC is tasked with a lot of responsibilities under the Act including the administration and enforcement of the provisions of the FCCPA and any other enactment with respect to competition and protection of consumers. The Commission also spearheads policy making and investigates economic activities in Nigeria to identify anti-competitive, anti-consumer protection and restrictive practices which may adversely affect the economic interest of consumers. It carries on the responsibility of advising the Federal Government generally on national policies and matters pertaining to all goods and services and on the determination of national norms and standards relating to competition and consumer protection amongst others.²

The FCCPA prioritises the rights of consumers in Nigeria by making salient provisions to protect them. The rights of consumers under the Act includes the right to information in plain and understandable language, right to disclosure of prices of goods or services, right to adequate product labelling and trade descriptions, right to disclosure of reconditioned or second-hand goods, right to select suppliers, right to cancel advance reservation, booking or order, right to choose or examine goods, right to return goods, right to fair dealings,  rights to protection against false misleading or deceptive representations, right against unfair reasonable or unjust contract terms, and rights pertaining to the quality and safety of goods and services.³

One of the rights recognised by the FCCPA is the right to information in plain and understandable language.⁴ A consumer is entitled to information concerning goods or services in a manner that is clear and understandable. Therefore, all notices, documents and visual representations relating to goods or services offered by businesses must be presented in plain language to the customers. A notice, document or visual representation is deemed to be in plain language if it is reasonable to conclude that an ordinary consumer of the class of persons for whom the notice, document or visual representation is intended with average literacy skills and minimal experience as a consumer of the relevant goods or services, could be expected to understand the content.⁵ The purpose of this provision is to ensure that consumers are able to make their purchases without any confusion attributable to ambiguous information.

The FCCPA also makes provisions on the right to disclosure of prices of goods and services.⁶ This has been a major issue because most online businesses post their products online without attaching prices to it, while the consumers are expected to send a private message in order to make enquiries of the prices. Asides online vendors, supermarkets also have the habit of attaching prices on the shelves for goods that are different from the prices contained in the computers at the cashier point. The law proscribes such acts. It is required that goods displayed for sale must have their prices adequately displayed, and a consumer should not ordinarily be required to pay a price higher than the displayed price. The provision promotes transparency in commercial transactions and prevents consumers from being subjected to undisclosed or unexpected charges.

Similarly, consumers are protected against misleading product labels and trade descriptions.⁷ A business must not knowingly apply to goods, a trade description that is false or likely to mislead consumers in relation to a material aspect of the goods. Similarly, trade descriptions or trademarks must not be altered, defaced, concealed or removed in a manner calculated to mislead consumers. This right is particularly important because consumers frequently rely on labels and descriptions when deciding whether to purchase a product.

The FCCPA further protects consumers through the right to disclosure of reconditioned or second-hand goods.⁸ All businesses supplying used, rebuilt, reconditioned or remade goods are to clearly and conspicuously disclose that fact. A consumer should therefore not be led to believe that a used or reconditioned product is brand new or original. This requirement promotes transparency and enables consumers to assess the value and condition of goods before completing a transaction.

By virtue of Section 119 of the FCCPA, a consumer has the right to select a supplier of goods or services. The Act provides that a business shall not as a condition of supplying goods or services require a consumer to purchase more goods or services from that same business, or enter into additional agreement with it or a third party. The exception to the provision is where the business can prove that the condition would be economically beneficial or more convenient for the consumer.⁹ The above right promotes consumer choice and discourages practices that may restrict competition.

Additionally, the FCCPA recognises the consumer's right to cancel an advance reservation, booking or order for goods or services.¹⁰ In such instances, the business is permitted to impose a reasonable and fair charge while taking into consideration the circumstances that led to the cancellation, the nature of goods and services, the length of notice given by the consumer as well as the implication of the cancellation to the business. Where a term or promotional condition restricts the consumer's right to a refund, the consumer must be adequately informed of that restriction.

Another important right of consumers is the right to choose or examine goods.¹¹ This right provides that where goods are displayed, consumers have the right to select or reject particular goods before completing the transaction. Furthermore, where a consumer purchases goods by relying on the description or sample made by the supplier, it is expected that the goods delivered must correspond with the description or sample. This provision is very relevant especially with respect to online business transactions, where the consumer may not have an opportunity to physically inspect the goods before purchasing them. In circumstances where the above right is breached or the goods purchased are found to be unsuitable for the purpose it was purchased and which had been earlier communicated to the supplier; consumers have the right to return the goods and are entitled to a refund of the money paid.¹²

The protection of consumers extends beyond the commercial transaction, but als0 covers the safety and quality of goods and services.¹³ According to the Act, every consumer has a right to receive goods that are fit for the specific purpose for which they are purchased. It is also necessary that the said goods are of good quality and free from defects. The goods are expected to be usable and durable for a reasonable period, having regard to the circumstances of their supply. Thus, businesses are to ensure that their goods comply with the applicable standards established by the relevant industry regulator.

The protection afforded to consumers in section 131 is reinforced by section 132 of the FCCPA which creates an implied warranty that goods supplied to a consumer will comply with the statutory quality and safety requirements. Where goods fail to meet the prescribed standards, the consumer can return them to the supplier within three months of delivery, without any penalty attached and at the supplier’s risk and expense. The supplier may then choose to either repair or replace the defective or unsafe goods or refund the purchase price. With respect to consumers who procure services, the consumer has a right to quality and timely performance and completion of services. The consumer is also entitled to a timely notice of unavoidable delays that may occur in the delivery of services.¹⁴

The FCCPA also guarantees consumers the right to fair dealings.¹⁵ In the course of commercial transactions, a business must not employ physical force, unfair tactics, coercion, undue influence, harassment or other forms of improper conduct. This rule applies to marketing, supply of goods and services, negotiation and contracts generally. The provision also protects consumers who may be taken advantage of because of factors such as illiteracy, physical or mental disability, ignorance or inability to understand the language of a contract.  

Further, Section 127 of the FCCPA protects consumers against unfair, unreasonable and unjust contractual terms. The law prohibits a business from supplying, offering to supply or entering into an agreement for goods or services at a price that is manifestly unfair, unreasonable or unjust, or on terms that are unfair, unreasonable or unjust. It further restricts conduct that requires a consumer to waive their rights, or waive the liability of the business. In determining whether a term is unfair, unreasonable or unjust, the Act takes into account circumstances including whether the term of the agreement is excessively one-sided, inequitable or adequate notice was not brought to the consumer's attention.¹⁶

Similarly, consumers are protected against false, misleading or deceptive representations.¹⁷  In the course of marketing goods and services via advertisements or other promotional activities, when a business or a person acting on its behalf makes a false, misleading or deceptive representation concerning a material fact to a consumer, they are to be held liable for damages which could be in the form of monetary restitution. Closely related to this is the provision on representations based on performance tests and testimonials.¹⁸ A business relying on such representations to promote their goods and services must be able to establish the authenticity of the testimonial relied upon and prove that the requisite permission in writing was given by the consumer who gave the testimonial before it is published.

ENFORCEMENT OF CONSUMER RIGHTS

Consumer rights in Nigeria can be enforced by an aggrieved consumer personally by either referring the matter directly to the business that supplied the goods or services, referring the matter to the applicable industry sector regulator, filing a direct complaint with the FCCPC, or approaching a Court with appropriate jurisdiction to seek redress.¹⁹

An industry sector regulator may, upon determining that there is no reasonable likelihood of the parties resolving their dispute through the procedure prescribed under the applicable industry code, terminate the process by issuing a notice to the parties.²⁰The party that referred the matter to the industry sector regulator may thereafter file a complaint with the FCCPC.

The FCCPC is also empowered to initiate a complaint on its own motion in respect of any conduct prohibited under the law.²¹Upon receiving a complaint from a consumer or initiating a complaint, the FCCPC will conduct a review to determine its merit. Where the complaint is found to be without merit and is deemed to be frivolous or vexatious, the FCCPC will issue a notice of non-referral to the complainant. Another option that can be exercised by the FCCPC is to refer the matter to the relevant industry sector regulator with jurisdiction over the subject matter for investigation or direct an inspector to investigate the complaint expeditiously.

If after the conclusion of investigation, it is proved that the consumer's right has been violated, the FCCPC together with the respondent may choose to agree on proposed terms for an appropriate order. The terms agreed upon will automatically become an order of the FCCPC.²²The order made by the FCCPC can be registered in a court of competent jurisdiction and the Court without hearing any evidence, may adopt it as a consent order of court. However, notwithstanding the absence of any agreement between the FCCPC and the respondent, the FCCPC still has the right to make an order which is to be binding on the respondent or issue a compliance notice upon receipt of the investigation report. 

JUDICIAL DECISIONS ENFORCING CONSUMER RIGHTS

Various courts in Nigeria have re-emphasised the right of consumers. Some recent decisions in cases like Anene v. MTN (Nig.), the unreported cases of Peace Mass v Tochukwu Odo, and Multi-Choice v David Ogundipe lends credence to this assertion.

In ANENE V. MTN (NIG.) COMMUNICATIONS PLC,²³ the Appellant, a customer of MTN instituted this suit because his airtime was frequently deducted over a period of time for caller tunes service which he allegedly never subscribed to. According to him, on the 18^th day of May 2014, while he was making contributions to a live radio program, his airtime was cut off by the Respondent. He found that there was no airtime in his phone line and could not purchase airtime on that day to re-connect as it was a Sunday. After correspondences, the Respondent, de-activated the caller tunes and refunded him N700 airtime with an undertaking not to unlawfully and illegally deduct his airtime again. However, after a while, the Respondent resumed the deductions for caller tunes service when he did not subscribe to it in spite of the Respondent’s claim of having deactivated the unsubscribed caller tunes.

The Supreme Court upheld the right of the Appellant in line with the provisions of the FCCPA which is pari materia with the United Nations Guidelines for Consumer Protection and condemned unfair and exploitative practices within the telecommunications industry. The Court further upheld the decision of the trial court in awarding the sum of five million naira as general damages.

In the Peace Mass case,²⁴ the Claimant, Mr Tochukwu Odo, maintained that he had purchased a ticket from a branch of the company to convey him to Enugu, but after several hours of delay caused by absence of passengers, he returned to the ticket office and requested a refund of his transport fare but his request was declined on the grounds that the Company had a no refund after payment policy. In delivering the judgment, the High Court of Enugu State held that the Peace Mass Transit’s “no refund policy’was illegal and void under Sections 120, 104, and 129(1) of the Federal Competition and Consumer Protection Agency Act (FCCPA) 2018. The Court awarded ₦500,000 damages in favour of the Claimant. The Court further held that policies denying refunds constitutes a breach of statutory consumer rights.

Another case which highlighted consumer protection was between David Ogundipe and Multi choice.²⁵ The Claimant claimed that he purchased a DStv decoder in 2024 and became a subscriber after being persuaded by the Company’s promotional campaigns which promised seamless transmission. He argued that on 23^rd January 2025, MultiChoice failed to provide uninterrupted transmission of the UEFA Europa League match between Manchester United and Rangers FC and that the prolonged disruption amounted to a breach of contract and misrepresentation by the Company. However, Multi Choice was of the view that although there was a technical glitch during the match, it maintained that the disruption resulted from the incoming broadcast feed from UEFA rather than any fault in its own systems.

The High Court of the Federal Capital Territory, in its judgement delivered by Hon Justice N.C. Ndukwe-Nwabulu, ordered MultiChoice Nigeria Ltd. to pay a total of N3 million in damages and costs to the Claimant for breaching its contractual obligation to provide uninterrupted DStv service during the live football match. The Court held that the Company failed to prove that the interruption was beyond its control, noting that it did not present sufficient evidence to support its defence.

On the claims for fraudulent misrepresentation, the Court held that although there was no evidence of fraudulent misrepresentation by MultiChoice, the interruption constituted a breach of contract, entitling the Claimant to civil remedies. The Court awarded the Claimant N1.5 million in general damages for breach of contract and N1.5 million as the cost of the suit, bringing the total award to N3 million. The Court further reiterated that subscribers are entitled to quality and uninterrupted subscription services, including live football broadcasts, under their contractual relationship with MultiChoice.

CONCLUSION

The protection of consumer rights is fundamental to the development of the Nigerian economy. While the FCCPA has significantly strengthened the legal framework for consumer protection in Nigeria by establishing a wide range of consumer rights, the effectiveness of this framework largely depends on proper enforcement. A major stumbling block to enforcement is the lack of awareness among consumers of the rights afforded to them under the law. Consumers who are unaware of their rights are less likely to recognise violations or pursue the appropriate remedies when such rights are infringed. There is, therefore, a pressing need for public enlightenment. Equally, manufacturers, importers, distributors and suppliers must also carry out their duties under the FCCPA and comply with consumer protection obligations. The FCCPC together with other relevant regulatory institutions also have an important role to play by exercising their powers to ensure strict compliance with the objectives of the FCCPA.

Footnotes

^{1. Section 3 of the FCCPA.}

^{2. Section 17 of the FCCPA.}

^{3. Section 114 to Section 133 of the FCCPA.}

^{4. Section 114 of the FCCPA.}

^{5. Section 114(20 of the FCCPA.}

^{6. Section 115 of the FCCPA.}

^{7. Section 116 of the FCCPA.}

^{8. Section 117 of the FCCPA 2018.}

^{9. Section 119 of the FCCPA 2018.}

^{10. Section 120 of the FCCPA 2018.}

^{11. Section 121 of the FCCPA 2018.}

^{12. Section 122 FCCPA 2018.}

^{13. Section 130 and Section 131 of the FCCPA 2018.}

^{14. Section 130 of the FCCPA 2018.}

^{15. Section 124 of the FCCPA 2018.}

^{16. Section 127(2) of the FCCPA 2018.}

^{17. Section 125 of the FCCPA 2018.}

^{18. Section 126 of the FCCPA 2018.}

^{19. Section 146 of the FCCPA 2018.}

^{20. Section 147 of the FCCPA 2018.}

^{21. Section 148 of the FCCPA 2018.}

^{22. Section 149 of the FCCPA 2018.}

^{23. [2025] 16 NWLR (PT. 2010) 1.}

^{24. Suit No: E/514/2021.}

^{25. Suit No. FCT/HC/CV/588/2025.}

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