BY NKECHI NAECHE-ESEZOBOR—Ahead of ongoing recapitalization in the financial sectors, the  Federal Competition and Consumer Protection Commission, FCCPC, has warned firms, legal advisers, transaction parties and other stakeholders against non-compliance with statutory obligations relating to mergers, acquisitions and other business combinations under the Federal Competition and Consumer Protection Act, 2018.

The Commission reiterated that, under the FCCPA, it has the power to review, approve, approve subject to conditions, or prohibit mergers and qualifying business combinations once they are 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.

The Commission stated that this requirement applies to a broad range of transactions, including share acquisitions, asset acquisitions, joint ventures, and other arrangements that fall within the legal definition of a merger under the Act and relevant regulations.

It added that the notification process enables the Commission to assess whether a proposed transaction is likely to substantially prevent or lessen competition in any relevant market in Nigeria, or raise public interest concerns. The process also supports the Commission’s responsibility to monitor market developments and maintain an informed understanding of competitive dynamics across sectors.

FCCPC further encouraged parties and their advisers to engage with the Commission at an early stage where a contemplated transaction may be notifiable.

It noted that early engagement, including pre-notification consultations, where necessary, can provide regulatory clarity, support efficient review timelines, and assist parties in meeting applicable compliance requirements.

The Commission emphasised that failure to notify a notifiable transaction constitutes a contravention of the FCCPA and may attract administrative penalties or other enforcement action in accordance with the law.

Accordingly, the Commission advised firms and transaction parties to take all necessary steps to ensure compliance before implementing any transaction that may fall within its merger review jurisdiction.

It added that stakeholders seeking further enquiries or clarification may contact the Commission or visit the FCCPC website.

The Commission reaffirmed its commitment to promoting fair competition, protecting consumers, and supporting a transparent, efficient and competitive business environment in Nigeria.

Following the signing of the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025),   insurance firms were mandated to shore up their operating capital.

Life   insurance firms are mandated to shore up their operating capital from N2 billion to N10 billion. General insurance firms are to raise theirs from N3 billion to N15 billion. Reinsurance firms are to shore up their capital from N10 billion to N35 billion.

NIIRA has given July 31 deadline for insurance companies to meet the recapitalisation requirement

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