Key Features of Business Competition and Consumer Protection Law in Nigeria

Akintunde Esan (The Legal Adviser Online) 

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This edition of the Legal Illumination of Akintunde Esan (The Legal Adviser Online) is focused on the key features of the Federal Competition and Consumer Protection Act (FCCPA) which was enacted in 2018, for the purpose of promoting fair competition and protecting consumer rights in Nigeria.

Key  Features of the Federal Competition and Consumer Protection Act (FCCPA)

Establishment of Regulatory Bodies: 

The FCCPA established the Federal Competition and Consumer Protection Commission (FCCPC) and the Competition and Consumer Protection Tribunal (CCPT). These bodies are responsible for ensuring fair, efficient, and competitive markets in Nigeria.

Consumer Rights Protection: 

The FCCPA in order to ensure that, the Nigerian consumers have access to safe products and services created consumers' rights such as the right to be informed, the right to choose, the right to safety, and the right to be heard so as to protect consumers from unfair contracts, deception, misleading advertisements , defective products, and abusive practices.

Competition Regulation: 

The FCCPA aims to prevent anti-competitive practices such as monopolies, cartels, and abuse of dominant market positions. It promotes healthy competition to benefit consumers and the economy by prohibiting agreements that restrict trade and by regulating mergers and acquisitions.

Merger Control: 

The FCCPA includes provisions for the regulation of mergers and acquisitions to prevent market dominance that could harm competition.

Consumer Complaints and Redress: 

The FCCPA establishes a legal framework for consumers to lodge complaints against businesses and seek redress. The FCCPC is tasked with investigating complaints and resolving disputes.

Scope of Application: 

The FCCPA applies to all businesses operating in Nigeria, including foreign companies with operations in the country, ensuring comprehensive coverage of consumer protection and competition regulation.

Penalties and Enforcement: 

Violating the FCCPA in Nigeria can result in various penalties, depending on the nature and severity of the violation. These penalties are designed to deter anti-competitive behavior and protect consumer rights. The FCCPA outlines penalties for violations and provides mechanisms for enforcement, including the ability to conduct investigations and impose fines. Here are some key penalties:

Fines: 

Companies and individuals found guilty of anti-competitive practices or consumer rights violations can be fined. The amount varies based on the specific offense and its impact.

Imprisonment: 

In some cases, individuals responsible for severe violations may face imprisonment. The duration depends on the offense.

Compensation: 

Offenders may be required to compensate consumers or other affected parties for any losses or damages incurred due to the violation.

Cease and Desist Orders: 

The FCCPC can issue orders to stop certain practices or behaviors that violate the Act.

Revocation of Licenses: 

Businesses may have their licenses revoked or suspended if they are found to be in serious breach of the FCCPA.

Public Disclosure: 

The FCCPC can publicly disclose the names of companies and individuals who have violated the Act, which can harm their reputation.

Further Legal Illumination and Legal Advice

For further legal illumination or legal advice on business competition and consumer protection law in Nigeria you can contact Akintunde Esan (The Legal Adviser Online) on WhatsApp @ 08073828487 or Email @ akintundeesan@gmail.com 

Downloading Contracts Agreements and Legal Documents Online in Nigeria

Downloading

The advent of the internet has created the digital platform where laws as well as legal information, commentaries and documents are now accessible to all and not only to a privileged few as it used to be. There are now numerous templates and ready-made contract agreements, memorandum of understanding, deeds and several legal documents which are available online for contractors, employers, consultants, buyers, suppliers, manufacturers, entrepreneurs and service providers.

This edition of Akintunde Esan’s Legal Illumination is a quick glance at the benefits and risks of using legal documents downloaded or obtained online in Nigeria.

The Benefits

The obvious major advantages of using  a contract agreement or any other legal documents downloaded or obtained online are:

1. no payment of solicitor’s fee

2. quick online access 

The Risks

Experience has shown that, while getting a legal template or a ready-made legal document online may be cost effective and time saving in the short run, it may lead to heavy losses, waste of valuable time on intractable disputes and lawsuits in the long run for the following reasons:

1. Most of the ready-made agreements and legal documents online are not tailor-made for Nigerian jurisprudence and legal realities, they drafted based on the socioeconomic environment and jurisprudence of foreign jurisdictions. 

2. Some of the contract agreements contain clauses that Nigerian Courts will declare null and void when challenged in Court.

3. A lot of them are not in compliance with the local regulatory and statutory requirements of Nigeria.

The Way Forward

The way forward from a clearheaded legal perspective is to contact a Nigerian Solicitor with a proper grasp of the jurisprudence of the subject matter of the downloaded agreement or legal document to:

1. review the agreement or legal document

2. redraft the agreement or legal document; or

3. you may contact Akintunde Esan of Ase Olodumare Chambers for further illumination.

Akintunde Esan is the Managing Partner/Principal Consultant @ Ase Olodumare Chambers, a Lagos, Nigeria based Law Firm providing legal solutions and consultancy services to local and international clients.

DOWNLOADING CONTRACTS AGREEMENTS AND LEGAL DOCUMENTS ONLINE IN NIGERIA is a legal illumination of AKINTUNDE ESAN known as The LEGAL ADVISER ONLINE. Akintunde Esan is the Managing Partner & Principal Consultant @ ASE OLODUMARE CHAMBERS (Legal Practitioners/Consultants & Chartered Mediators)

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CONTRACT OF INSURANCE AND INSURANCE CLAIMS IN NIGERIA

Introduction

 

A contract of insurance and the making of insurance claims usually involve the insurer, insured, insurance brokers, third party claimants and solicitors. This edition of Akintunde Esan’s Legal Illumination seeks to provide useful hints to these insurance service providers and receivers on the conditions necessary to constitute a valid contract of insurance and insurance claims in Nigerian Insurance jurisprudence.

1. Formation of Contract of Insurance

 

a) Non-marine Insurance Contracts

 

In non-marine insurance contracts,  the usual practice is for the proposer to complete, sign and return the proposal form to the insurers, there is no legal necessity on his part to complete any proposal form before a valid and enforceable contract may arise. It is only in marine insurance transactions that writing is a conditio sine qua non for an enforceable contract to arise. 

b) Marine Insurance Contracts

 

A contract of marine insurance is a contract of indemnity and hence the policy and or insurance certificate bears the signature of the insurer only. 

The law, in so far as non-marine insurance transactions are concerned, is that even an oral contract of such insurance is valid so long as it is reasonably clear that there is a definite intention on the part of the parties to enter into such a contract provided, however, the parties concerned are in consensus ad idem on the fundamental essentials of such insurance contract. Ngillari v. NICON (1998) LPELR-1989(SC) per Iguh J.S.C. (Pp. 38-39, Paras. B-A)

 

c) Acceptance of Insurance Proposal

 

A contract of insurance should be one of utmost good faith, “uberima fidei”. To constitute a contract of insurance therefore, there must be an unqualified acceptance by the other party. In other words, a prima facie contract of insurance only comes into existence the moment an insurance proposal in the normal form is accepted unequivocally without qualification by the insured. Industrial and General Insurance Company Limited v. Kechinyere Adogu (Mrs.) (infra) per Aji, J.C.A.(P. 22, paras. D-F)

 

d) Payment of Insurance Premium

 

The fundamental purpose of an insurance contract is to give cover to an insurance risk. Section 50(1) and (2) of the Insurance Act makes payment of insurance premium a condition precedent to a valid contract of insurance. 

e) Interpretation of Statute - Section 50 (1) of the Insurance Act 2004

 

The provisions of section 50(1) of the Insurance Act provides as follows: 

“The receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance.”

In Industrial and General Insurance Company Limited v. Kechinyere Adogu (Mrs.) (2009) LPELR-15093(CA) Aji, J.C.A. at Pp. 20-21, paras. E-F held that:

“Section 50(1) of the Insurance Act is clear and unambiguous. It is simply to the effect that the receipt of an insurance premium is a condition precedent to a valid contract of insurance, and there is not cover in respect of an insurance risk unless the premium is paid in advance. In other words, a valid insurance contract is made when a premium for the insurance is paid in advance by the insured."

f) It should be noted that, a contract of insurance may involve merely a promise to pay the premium. It is not the law that there must be implied in a contract of insurance a provision that the right of indemnity by the assured is conditional on his previous payment of the premiums. See National Insurance Corporation of Nigeria v. Power & Industrial Engineering Company Ltd. (1986) LPELR-1965(SC) Per Obaseki, J.S.C. at P. 42, paras. D-F.

 

2. Subject Matter of the Contract of Insurance

 

Where the subject matter of the contract of insurance had ceased to exist before the contract of insurance is concluded, the contract is void. See LEADWAY ASSURANCE CO. LTD VS. J.U.C LTD (2005) 5 NWLR (PT. 919) 539 AT 555-556.

 

3. Premium to be Arranged

 

The words 'Premium to be arranged' have been held to mean premium to be agreed. Libercan Insurance Agency Inc. v. Mosse (1977)2 Lloyds Rep 560 QBD. at 568. The clause does not contemplate any alteration in the terms of the insurance other than in respect of premium. National Insurance Corporation of Nigeria v. Power & Industrial Engineering Company Ltd. (1986) LPELR-1965(SC) Per Uwais J.S.C. (P. 42, paras C-D)

 

4. Insurance Broker

 

An insurance broker is not the agent of the insured but that of the insurer since the insurer usually pays commission to the broker. Unity Kapital Assurance Plc v. Akut Investment Limited.

 

Where the parties contract through an agent, in this case a broker, the incidences of the contract between the insured and the broker and between the broker and the insurer are distinct from that between the insurer and the insured. This is because once the insured pays his premium to the broker he has met his obligation to the insurer and the insurer cannot resile from the contract whether or not the broker remits the sum paid to the insurer. Shoreline Liftboats Nigeria Ltd. & Ors v. Premium Insurance Brokers Ltd. & Anor (2012) LPELR-9795(CA) Per Agbo, J.C.A at P. 10, paras. B-D.

 

5. Unforeseen Future Occurrence

 

It is trite that a contract of insurance is meant for unforeseen future occurrence and not for an incident that has occurred. See Ajaokuta Steel Co. Nig v. Corporate Insurers Ltd (supra), 

6. A Third Party Claiming against an Insured in Respect of a Risk Insured Against

 

The common law position is that a third party cannot join an insurer but the position has since changed by legislation. See the case of Unity Life and Fire Insurance Co. v Ladega (1996) 1 NWLR (Pt.427) where OGUNTADE JCA (as he then was) held as follows:

"Under the common law, the Plaintiff in this matter, could not have joined the appellant as a party to the suit brought against the persons said to be responsible, for the Plaintiff's injuries. However, Section 11 of the Insurance (Special Provisions) Decree No.40 of 1988 altered the position. The Section provides: "Where a third party is entitled to claim against an insured in respect of a risk insured against, he shall have a right to join the insurer of that risk in an action against the insured in respect of the claim: provided that before bringing an application to join the insurer, the third party shall have given to the insurer at least thirty days notice of the pending action and of his intention to bring the application."

It should be noted that though, the argument that the insurer cannot be sued along with the insured is not correct, doing so however is subject to some conditionalities. Per NIMPAR, J.C.A. (Pp. 41-42, paras. C-D) DAREGO v. A.G. LEVENTIS NIGERIA LTD & ORS (2015) LPELR-25009(CA).

 

7. A Passenger Vehicle

 

"A passenger vehicle" was defined in section 2(1) of the Motor Vehicles (Third Party Insurance) Act as "a motor vehicle used for carrying passengers for hire or reward", so that it is only if the person is being carried for hire or reward that an insured must be covered by a policy. See Lion Of Africa Insurance Company Ltd v. Mrs Stella Anuluoha (1972) LPELR-3181(SC).

 

8. Compulsory Insurance

 

The question whether direct remedies against an insurance company is available to a third party within the range of compulsory insurance was answered by the Supreme Court in Lion Of Africa Insurance Company Ltd v. Anuluoha (supra) per Lewis J.S.C. at Pp. 8-9, paras. G-D thus:

"Subject to certain exceptions a policy is not required to cover liability in respect of the death of, or bodily injury to, a person being carried in or upon, or entering or getting into or alighting from, the vehicle at the time of the occurrence of the event out of which the claim arises. Anyone who travels as a passenger in a private car has, of course, a right of action against his host, if negligent driving of the host, or of the host's servant if he is driving within the scope of his employment, results in injuries to the passenger, but this may be a barren remedy if the host is insured only within the compulsory limits. Even if the host has a wider insurance, the direct remedies against the insurance company available to a third party within the range of compulsory insurance will not be open to the passenger."

Conclusion

 

The insurance service providers and receivers in need of further illuminations on the conditions necessary to constitute a valid contract of insurance or claim are advised to contact Akintunde Esan.

 

CONTRACT OF INSURANCE AND INSURANCE CLAIMS IN NIGERIA is a legal illumination of AKINTUNDE ESAN known as The LEGAL ADVISER ONLINE. Akintunde Esan is the Managing Partner & Principal Consultant @ ASE OLODUMARE CHAMBERS (Legal Practitioners/Consultants & Chartered Mediators)

Top 37 Profitable Small Business Ideas in Nigeria and Your Lawyer

If you own or run a business or you are planning to own or run one, a competent accountant and a sound lawyer are indispensable to your business success. You need an accountant to conduct a regular audit on the credit worthiness of your business. You need a lawyer to give you sound legal advice to save you and your business from evitable legal liability and expensive and protracted court cases.

Every business move you plan to make or any contract you are about to sign has hidden and covert legal liabilities which only a skilled legal mind can detect. Don’t be kobo wise and naira foolish: no profitable business can stand the test of time if resourceful accountants and lawyers are not part of it.  

As you are planning your next business move, you are advised to consult a resourceful lawyer in order to avoid evitable legal liability, don’t be one of those naïve people, who assume that, they only need a lawyer when a court matter arises. Such people end up incurring evitable legal liabilities that, they could have avoided in the first place had they consulted a lawyer before making the move.

Below are 37 profitable small business ideas for the business minded sourced from Enterprises Boom Website - http://www.enterpriseboom.com/profitable-and-lucrative-small-business-ideas-in-nigeria/

1. Gym Business

Gym and fitness business in Nigeria is very viable considering the large number of people that have been advised not only by doctors but also by peers to engage in exercise daily. Many people do not want to go off at the early hours of the day in Nigeria for jogging because of risks of being knocked down by careless drivers or being attacked by hoodlums. Starting a good Gym business in cities across Nigeria will yield a great benefit if you have good managerial skills.

2. Vendor Machine retail

This is a business of selling a product by using a machine without the presence of the seller. It’s often seen in foreign countries and believe me this business is good but requires constant electricity to function. A good ideal step is to start the business in a place that has 24 or 12 hours electricity like in banks, hotels, plazas, complexes in Nigeria and display items that people are likely to need regularly like bottle water, beverages, peanuts, biscuits, meat pies and other snacks. They will operate the machine by their self by choosing what they want to buy and slotting the money inside as indicated in the machine. It’s very profitable and small business idea you can turn to a major one by establishing it across all cities in Nigeria.

3. Web design

Web design development business in Nigeria is a good one especially this era most businesses are going online. You will have to create and manage their websites as their webmaster either on contract or monthly payment and think of managing more than 400 websites. If you have a good knowledge about CMS including word press and E-commerce templates then you can start immediately.

4. Wine bar

With the rising number of people that cheers wines, such bar has become a popular and recommended bar to start especially in the big cities of Lagos, Abuja, Enugu, Port Harcourt and Akwa Ibom.

5. Auto parts re-sellers

Starting with car parts like bumpers, fenders, Shock absorbers, brake pads, gears, axels clutches is a good move to take some percentage of market shares and locating at a good place is vital.

6. Freelance writing

Freelance writing is profitable these days and if you are a good writer you can write articles for some websites and blogs and get paid monthly or per article depending on their choice.

7. Perfume and Jewelry shop

This is a very viable retail business you can start and expand it into a chain business in Nigeria. People often go to public markets to buy these items or shopping malls but having a smaller department store of these items will create a difference and doing it right will earn you big profits.

8. Recharge card printing

Since the coming of the telecommunication companies in Nigeria, Recharge card printing has been a good small business idea and you can start this with less money as most tools you need is a computer, printer, the software and the e-pin to generate and print the vouchers.

9. Bead making

Bead making is a creative art of business which you can start with less effort. Customers have different preferences at different occasions and most people tend to wear beads as necklace for big occasions than gold  others are bangles, earrings etc.

10. Cosmetics shops

It’s often call women businesses in Nigeria because of the large population of females who patronizes this shops but nowadays some men now do buy cosmetics. Cosmetics business is profitable and your location is very important for this small business idea.

11. Magazine publishing

Printing magazines of a particular course like fashion, business, education, social welfare, entertainments etc. is a nice idea. Producing good knowledge and having the tactics to generate real information will make readers come for more.

12. Paint Manufacturing

This is a good business you can start with less money. If you have good knowledge of the right chemicals and formulas to use in mixing the paint then you will start your paint industry small and grow with time. There is large target market for this business considering the rate of infrastructural developments across Nigeria.

13. Affiliate marketing

If you own a website or a blog or you are a member of many groups in social media with thousands of followers or fans then you can make money through affiliate marketing by referring some consumers to buy products and get the percentage paid to you. E-commerce websites like Konga and Jumia offer affiliate programs to Nigerians.

14. Recruitment agency

People are making money with recruitment agency as companies seeking for employees and Job applicants looking for Jobs are many. You will then become a bridge that will bring them together and collect some percentage of salaries or tip for your services.

15. Barbing saloon

A barbing saloon business is a viable business especially if you are willing to do things differently and learn to start, run and manage such business very well in Nigeria. People do haircuts and shave regularly and this brings in many repeated customers. It is a good small business idea you can start in any part of Nigeria.

16. YouTube channel

A channel that have to do with creating original and awesome videos for people all over the world to watch for free. You can earn money from these videos by monetizing it with Google AdSense. Most times when you watch a video, it pauses for an ad to display and at the other times, ads display along with the video playing and when people click those ads, the publisher makes some money.

17. Consultancy business

Starting a consultancy business in Nigeria puts you at the affairs of delivering expert advice and handling issues professionally for your clients. There are many consultancy platforms you can start depending on your expertise such as relationship consultancy, business consultancy, career experts, education consultants, etc.

18. Rental service

Renting out items like chairs, canopies, cold rooms vehicles, plates, dresses, tables etc. at different occasions in Nigeria is a good small business idea.

19. Bottled water Production

This is a lucrative business idea in Nigeria to start as it is an essential commodity. The target markets are large considering your locations as you can supply to hotels, bars, restaurants, fast foods, schools, retail shops etc.

20. Iced block business

Iced block business in Nigeria is viable and because of the constant epileptic power supply across major cities in Nigeria, Iced block has been in constant demand by many businesses ranging from hotels, restaurants to fish and chicken cold rooms stores.

21. Polythene Nylon production

It’s a business you can start with less money and you may not need to start the whole manufacturing of the product. You can just buy the large polythene products and focus on cutting it to different sizes then sell to people. Your target markets are super markets, shops, fast foods etc.

22. Mobile app

It’s a new wave in the tech industry and mobile app that solves a problem by delivering service to it’s users will make a huge impact with potential big market value.

23. Blogging

Blogging in Nigeria is a good business idea as most successful bloggers in Nigeria has created an impact by delivering great services, knowledge, credible information and updates to its million visitors and they also make good profits through monetisation.

24. Massage therapist

Spas and Oil massage is a trending business and renting a space with good knowledge of massage is what is needed. Massage connects body and soul and doctors recommend such to patients sometimes.

25. Event planning

If you know how to plan events successfully and makes it to look amazing, then you should consider starting this small business idea in Nigeria.

26. Real estate agency

Estate agency business is a boom as there is a high demand of rental apartments, lands, flats, stores and a demand for houses for sales, lands etc. Find a buyer and locate him to a seller, once a deal is reached you will be paid your percentage agency fee which is basically 10 percentages from both parties.

27. Bakery

From baking breads, cakes to fish rolls, meat pies etc. Baking is a good business if you can mix the ingredients very well and bread is mostly used for breakfast and your ideal target markets will include shopping malls, super markets etc.

27. Exercise books

Printing exercise books is very lucrative. I know of someone who major in exercise books and he makes a lot of profits from these business because of the demand of it during school resumption. You will be able to know how to market your goods directly to schools for you to have repeated customers regularly.

29. Snail farming

It’s relatively cheap to start as you can get the snails direct from the bushes or buy some big Snails in the markets. It’s foods are also very cheap as they mainly eat vegetables and fruits. Snails lay many eggs ranging from 200-300 eggs per batch and this makes it very profitable as it’s very costly when consuming in different restaurants across Nigeria.

30. Fish farming

Highly consumable farm product and it has a high demand daily in Nigeria. Cat fish farming business can give you bigger profits because of the cheap feed mills it requires.

31. Poultry farming

Many people have started this business and even from the local villages to the bigger cities, poultry farming is a lucrative business idea.

32. Liquid soap Making

Liquid soap making in Nigeria has a huge demand because of its variety of uses and the supply is not meet yet meeting the demand in Nigeria. Starting the business and marketing your product very well will make the difference.

33. Cloth boutique

Boutique business needs more innovative measures to be able to stand different among competitors and using effective strategy to start your clothing store will generate revenues for your business as it’s a good business idea.

34. Condom shops

One of the most demand-able products in drugs stores can now have its own stores. Condom shop gives you the benefits to sell toiletries, sanitary pads, gels and other protective items against germs.

35. Tissue roll

Tissue roll has big potentials as the people use toilet tissues, serviette, paper towel etc. daily and your market target is huge. It’s a good small business idea provided you can buy the Jumbo reel and buy the cutting machines. Then cut the tissue to sizes and package it with your company name. You can as well produce the jumbo roll using the raw materials.

36. Diapers production

It is now a profitable product because every mother uses it for keep the child warm at the early infant age. Diapers have a huge demand in the market and even most people import these products while it can be manufactured in Nigeria.

37. Phone and Computer retail

Starting a phone and computer retail stores requires effort and careful understanding of the retail industry. But the idea of focusing just on both products and the high sales of both products in Nigeria will boost your business.