The balance between equity and efficiency; reflections on the goals of the new Nigerian competition law

In January 2019, the Nigerian Government finally enacted its first competition law after several attempts to do so previously failed. Since all competition regimes advance one or more goals, the paper provides a critical evaluation of what the goals of the Nigerian Competition Law ‘is’ or ‘are’ and/or what they should be. This paper posits that discussion on goals must relate fundamentally to the true reason(s) the nation ‘needs’ an antitrust legislation and the relationship between these reasons (as reflected in the preamble of the legislation) and the prohibitory aspects of the law.Although the goal of competition is generally thought to be relating to promoting economic efficiency, however, for developing countries (including Nigeria), competition must compose of an important equity dimension. Ironically, the work uses the ‘developed’ experience of the EU in later stages to show that the goals of an antitrust policy are never static but dynamic and may not necessarily always admit of ‘efficiency’ considerations. This paper’s argument is that Nigeria needs a welfarist approach to competition which means efficiency should sit as a top objective and that any compromise on economic efficiency as the goal must be accommodated only to the extent that basic principles of a market driven competition is not harmed. Consequently, the work reflects on how the new Nigerian law has provided a balance between market efficiency and other goals of competition and how the new Nigerian competition body can operationalise this balance in the development of the nation’s antitrust policy. In this regard, the EU also provides some important enforcement lessons.