The world has been expecting this as the war in Ukraine moves into the injury time. But no one has predicted with high confidence that Russia would strike this early with its gas. Yes, Russian energy giant Gazprom has announced the suspension of natural gas supplies to the EU via the Nord Stream 1 pipeline, for an indefinite period, due to technical malfunctions.

Last week, I read a piece where Russia was worried that it had so much money that it needed to slow the appreciation of its currency, and the only way to do that was to buy other currencies. I even suggested buying Nigerian naira. Typically, because of sanctions, Russia’s balance of payment became exceedingly favorable (you export so much and import largely nothing) heating up the currency, ruble, which has appreciated in recent weeks.

With so much money in the bank, it now wants to do a killer: freeze export of gas to Germany and the broad EU indefinitely. Global leaders just finished a meeting with a plan to cap the price of Russian oil. Now that Russia is showing that it can live without even supplying hydrocarbons, a new playbook would be needed. This is a consequential move that can push Europe into recession, and Africa may not be spared. An adult leads to lead right now in our world – the global economy is at risk!

Russian state-owned energy giant Gazprom announced Friday that it has “indefinitely” suspended all natural gas deliveries via its Nord Stream 1 pipeline, the key artery linking Russia and the European Union, citing equipment issues at one of its compressor stations.

The announcement appears to realize European fears that Russia intends to cut off gas on the pretext of maintenance problems, a possibility that has led Western countries to scramble to build up supplies ahead of winter.

Gazprom said in a statement Friday that the shutdown was caused by “malfunctions” detected on a turbine at the Portovaya compressor station. It did not provide a time frame for restarting supplies. Russia had halted flows on Wednesday, ostensibly for maintenance, raising anticipation that it intended to cut off supplies altogether.

Gazprom’s announcement comes just hours after G-7 finance ministers announced their plans to implement a price cap on Russian oil exports in an effort to sap President Vladimir Putin’s war funding.

Comment on Feed

Comment: I remember a man pointing out that Germany was too dependent on Russian. He was laughed at and ridiculed as he didn’t know anything about politics and international affairs.

Comment on1: Let’s wait to see what ‘Germany’ and the rest will do. You can’t tell me this phase was not anticipated at a point. Europe is a bloc. Russia is a single nation. Each have their advantages. I wouldn’t bet that a single country will easily out maneuver a determined group no matter the initial advantages the single guy would appear to wield coming into the battle.

My Response: I am not really worried on what happens in EU or Russia but Africa. If EU is forced to scramble for energy, it will price out many African countries that need energy in the global market. I did not post this because of any pity for Germany. Rather, Africa!

Comment 2: When two people fight, you separate them. And if one is a bully and won’t let the other be, then a stronger person contains the bully and puts the fight to an end. The fight just has to end one way or the other. That’s how we were raised as children. But what we have seen between Russia and Ukraine is that those who should have separated the two fighting or contained the bully rather took actions to lengthen the war.

Everyday this war is fought, irreplaceable human lives get lost. What will be the price of the winner of this war in the end? I hope it will compensate for the lost lives. Let the gas supplies be suspended and let the war bite into everyone’s skin- the fighters and those cheering them on from the sidelines. Maybe then, someone will have the common sense to show real leadership.

Comment 3: Well it is high time African Oil producing countries prioritize sister African countries in terms of energy. Europe will find a way out but African countries will have a very challenging year. Food production and energy must be prioritized by African leaders. The West needs to learn that although they have an edge over Russia in media ownership. The real economy is very different. Russia plays a key role in the world energy and nobody can deny that.

It goes without saying that Nigeria has a very serious problem regarding Consumer Rights and Business competition, with many end-users, customers and consumers either resigning to their fates when faced with abysmal product/service quality and delivery or resorting to measures like call-outs and public shaming of brands on Social Media.

Whether It is from very dubious Online loan providers to shoddy Fast food services to sub-par Banking services and Telecommunications services, constant consumer rights violations continue to occur, with most consumers not even being aware that a legal framework on Consumer Rights Protection actually exists in Nigeria.

Regarding business competition, we have witnessed cases of Consumers being at the mercy of companies in certain sectors that come together to form monopolies that constitute the height of unfair business practices.

These 2 situations mentioned above will be forming the focus of this article which will be treating the topics of :-

– The definition of Consumer Protection.

– The rights of consumers in Nigeria.

– The Legal and Regulatory Framework governing Consumer Protection and Competition in Nigeria.

– The remedial options available to aggrieved consumers.

– The dispute resolution options available to aggrieved consumers.

What is Consumer Protection?

Consumer Protection is the practice of safeguarding/securing the rights and interests of end-users/buyers of goods and services as well the public interest against unfair business/market practices.

What is the Legal Framework governing Consumer Protection and Competition in Nigeria?

Consumer Protection and Competition is regulated mainly by the Federal Competition and Consumer Protection Commission FCCPC through the Federal Competition and Consumer Protection Act(‘The Act’) 2018.

What are the objectives of Consumer Protection in Nigeria?

Consumer Protection in Nigeria is aimed at :-

– Ensuring the safeguarding of Consumer Rights.

– Creating Guidelines providing for proper sensitization of consumers to enable the making of better-informed purchasing decisions.

– Ensuring compliance of goods and services providers with laid down quality and safety minimum requirements.

– The normalization of fair Business practices and competition.

– The creation of an efficient justice delivery/remedial system for consumers whose rights have been violated.

What is the applicability limit of the Federal Competition and Consumer Protection Act?

The Act is applicable to :- 

– all commercial/profit-taking activities geared toward the satisfaction of Consumer demand within or having effect in Nigeria, whether they involve government agencies, departments or corporations ;

– to disallowed business conduct by Nigerians or resident foreigners in Nigeria, be they individuals or corporate entities;

– anybody regarding the acquisition of assets/stocks outside Nigeria which will lead to a change of the business directly/indirectly in Nigeria.

– overriding power in the event of conflict with the provisions of any other law regarding Competition and Consumer Protection except when in conflict with the Constitution of the Federal Republic of Nigeria.

What are the rights of a consumer?

The rights of a consumer in Nigeria are :-

– The right to fair dealings.

– The right to safe and quality goods and services.

– The right to select suppliers/vendors.

– The right to cancel advance bookings.

– The right to return goods.

– The right to Customer/End-user Data Privacy.

– The right to inspect goods to be purchased.

What is the operating structure of the Federal Competition and Consumer Protection Commission?

The FCCPC basically handles Consumer Protection matters pursuant to its statutory duty of enforcing the provisions of the Federal Competition and Consumer Protection Act.

The FCCPC handles Consumer Rights petitions and makes  decisions which can be appealed by going to the Competition and Consumer Protection Tribunal (CCPT) . 

Decisions of the CCPT are binding and must be registered with the Federal High Court for the purpose of enforcement.

The powers of the CCPT also override the decision making powers of any other Regulatory agency in any other sector regarding Consumer Protection and Competition.

Please note that appeals of the CCPT are to be commenced at the Court of Appeal of Nigeria within 30days of the CCPT passing its order/judgment.

Who is legally qualified to file/make a petition to the FCCPC?

– Individuals(aggrieved consumers)

– Individuals (on the basis of public interest).

– Accredited Consumer Protection Groups.

– The FCCPC on its own decision.

What actions can the FCCPC take in the course of enforcing the FCCPA?

The FCCPC can:-

– Close off any production center used for the manufacturing of substandard, fake, hazardous or illegal goods.

– Issue Public notices of harmful goods in circulation.

– Work with other sector regulators to penalize businesses found to be in violation of consumer rights via punitive fines, sanctions and Business license suspensions.

How does the FCCPC work to prevent unfair business competition?

The FCCPC does this by carrying out pre-approval screenings of all company merger applications to be sure that:-

– it will not reduce competition via monopoly creation;

– the merger will result in technology efficiency and enhancement;

– the merger will not run contrary to public interest.

Conclusion :- It is hoped that a clearer understanding of the Legal Framework governing Competition and Consumer Protection has been achieved from the above write-up to enable business people and consumers know how to make better informed decisions concerning commencing company mergers and seeking legal remedies for the violation of their Consumer Rights respectively going forward. 

I have limited my travels due to covid-19 paralysis. Now, feeling confident that the evil is behind us, I will begin my usual global shuttles. I will be in Riyadh, Saudi Arabia, in February 2023. While in the Kingdom,  I will like to meet members of Tekedia Capital syndicate (we have many from there). Also, Tekedia Mini-MBA learners, we will connect.