A former CEO of the Federal Competition and Consumer Protection Commission (FCCPC), Tunde Irukera SAN, has advocated for the strong implementation of existing Nigerian laws and regulations to boost outstanding economic results for companies and consumers in Nigeria.
Irukera is the founding partner at SimmonCoopers Partners and a former CEO of the FCCPC, with almost 30 years’ expertise ranging from representing victims in significant human rights violation cases to developing frameworks for market-based legislation and regulations that achieve economic efficiency, as well as engaging in significant multi-jurisdictional remedial representation of exploited individuals, organizations, and governmental entities.
During his time as FCCPC CEO, the Commission, through a collaborative effort with Google, ensured that a total of 47 loan apps operating illegally in Nigeria and engaging in unethical practices—such as forcing loans on people and using harassment and defamation—were removed from the Google Play Store.
In an exclusive interview with Naijaonpoint, Irukera offers advice regarding companies and consumer protection laws and the regulatory space in Nigeria, among other topics.
Naijaonpoint: Sir, what do you consider as the biggest threat(s) or challenge(s) facing consumer protection in Nigeria? And what are the steps to address them, if any?
Tunde Irukera: The most important component of a robust consumer protection system is a knowledgeable consumer. This is multifaceted. It includes a level of sophistication that is high, not necessarily extremely educated in a formal way, but sufficiently understanding to recognise the obligation owed to him or her as a consumer by producers and providers.
Consumers are entitled to quality goods and services, and a sensitive and responsive service orientation. Consumers must know this, demand it, and insist on it.
And when there are still failures or dissatisfaction, there must be a clear, easily accessible, dependable, and effective regulatory regime to hold producers and providers accountable to the consumers, and appropriate consequences for failure to meet applicable standards of quality or service.
The consequence is the added tool of enforcement that deters repeat failures and deters others from similar failures.
The absence of the above framework/regime is perhaps the greatest challenge to consumer protection. Two steps are important to address this; first is continuing advocacy to ensure consumers recognize their rights and how to ensure enforcement when the provider or producer is not responsive.
This advocacy is a matter for not just the regulator, but all channels of education and information dissemination, including businesses using their platforms and channels to advise consumers about their rights, and the redress process where dissatisfied.
Naijaonpoint: Sir, compared with other jurisdictions in the West, do you think the present laws and regulations in Nigeria position the country to fully benefit from the operations of foreign entities or investors operating in Nigeria? Kindly explain why or why not.
Tunde Irukera: I believe, for the most part, at least with respect to consumer protection and competition regulation, our legislative framework is not lacking.
Is it possible that there could be additional laws or provisions in existing laws? Of course! But I would say that existing laws and regulations, if fully and strongly enforced, will yield outstanding results, producers or providers being foreign companies notwithstanding.
The reality of adequacy of protection is beyond the black letter of the law. Indeed, legislation is a starting point, and a crucial foundation; however, law can really just be ink on paper if compliance is weak, and compliance will inevitably be weak if enforcement is not a predictable, proportionate, and consistent response to non-compliance.
Naijaonpoint: What other measures should the government and relevant government agencies adopt or sustain to fully maximize foreign and local investments for the economic benefit of the nation?
Naijaonpoint: What other measures should the government and relevant government agencies adopt or sustain to fully maximize foreign and local investments for the economic benefit of the nation?
Tunde Irukera: One thing that investors look for is clear, predictable, and stable regulatory frameworks. This is up to the government.
It is important that regulators don’t operate in silos, but engage in collaborative and coordinated approaches to regulation where the common theme of the government’s policies and aspirations is the very core.
Naijaonpoint: What should relevant authorities in Nigeria learn from their counterparts regarding ease of doing business and the fight against unfair market dominance?
Tunde Irukera: Consistency, predictability, stability, and equal standards for enforcement. Deep knowledge and understanding of the industry that is the subject of regulation, and recognition that regulating commerce is complex and dynamic, requiring adaptable approaches, not rigidity, and the right tools.
Ease of doing business, however, does not mean that businesses can define and determine their compliance or levels thereof. On the contrary, where regulation is not transparent and firm, it discourages business and encourages only those who either do not desire to comply or have weak compliance cultures.
Such businesses do not provide a net benefit to society.
With respect to market concentration and preventing abuse of dominance or market power, the FCCPA and applicable Abuse of Dominance Regulations are recurrently sufficient subject to full application and enforcement.
Naijaonpoint: What do you consider to be the factors negatively affecting local content patronage in Nigeria, and can they be addressed? There still seems to be more patronage of foreign products.
Tunde Irukera: Consumers generally patronize products or services they have confidence in at competitive prices.
Generally, this isn’t a choice between locally made or foreign-made goods or services.
Although there are other appreciable issues that require regulatory and policy attention to make locally produced goods most competitive, from consumer protection and competition standpoints, it comes down to quality, options, versatility, and price.
There are locally made products that favourably compete with foreign products in quality, price, innovation, and options; and there are foreign goods that, other times, favourably compete against locally produced ones. That is not uncommon in most markets globally.
It is, however, an understandable, in fact, commendable policy for a government to encourage more consumption of locally produced goods, as that is vital for not just the balance of trade, but for economic growth and shared prosperity.
Policies targeted at promoting such aspirations are welcome, and generally comply with applicable laws in a free market, such as avoiding anti-competitiveness or discouraging competition.
Naijaonpoint: Leveraging on your over 30 years of expertise in various aspects of law, what do you have to say to the present crop of federal legislators regarding companies and consumer protection in Nigeria?
Tunde Irukera: I strongly advocate that legislators and the legislative process be more intentional and based on clear objectives supported by knowledge among the legislators, as well as their advisers and aides.