The Federal Competition and Consumer Protection Commission (FCCPC) has issued a rigorous warning to corporations, legal practitioners, and financial advisers against executing mergers and acquisitions without obtaining prior statutory approval.

In a statement released on Tuesday by Eme Eyo David-Ojugo, the Head of the Commission’s Mergers and Acquisitions Department, the regulator emphasized that any business combination meeting the prescribed thresholds under the Federal Competition and Consumer Protection Act (FCCPA) 2018 must be officially cleared before implementation.

The Commissions noted that the mandatory notification requirement is designed to safeguard the Nigerian economy from anti-competitive practices.

By reviewing proposed deals, the FCCPC aims to prevent market concentrations that could “substantially prevent or lessen competition” or harm the public interest. The regulator clarified that this oversight applies broadly across various arrangements, including the acquisition of shares, asset transfers, joint ventures, and other structural business combinations that fall within the legal definition of a merger.

Failure to comply with these notification protocols, often referred to as “gun-jumping” in regulatory terms, carries significant legal and financial consequences.

The FCCPC warned that transactions carried out in defiance of the Act are not only subject to stiff administrative penalties but may also be declared void. The Commission underscored that the notification process is a critical tool for maintaining visibility over shifting market dynamics and ensuring that larger corporate entities do not unfairly dominate specific sectors to the detriment of consumers.

In light of the increasing frequency of corporate consolidations in response to current macroeconomic pressures, the FCCPC urged all transaction stakeholders to engage with the Commission early in the deal-making lifecycle.

To facilitate smoother transitions, the regulator highlighted the availability of pre-notification consultations, which are intended to provide regulatory certainty and streamline review timelines.

Businesses are advised to strictly adhere to the guidelines to avoid disruptions to their operations or severe regulatory sanctions.