RELEVANT LEGAL AND INSTITUTIONAL

INSTRUMENTS FOR THE PROTECTION OF CONSUMER

RIGHTS AND PRIVILEGES UNDER THE CONSUMER
PROTECTION ACT OF 1992. 1

MRS IFY UMENYI

DIRECTOR GENERAL,
CONSUMER PROTECTION COUNCIL
ABUJA.

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Being Text of Invited Lecture at a One Day National Conference on Electricity Consumers in Nigeria
holding at International Conference Centre, Abuja, 14th March, 2007

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RELEVANT LEGAL AND INSTITUTIONAL INSTRUMENTS FOR
THE PROTECTION OF CONSUMER RIGHTS AND PRIVILEGES
UNDER THE CONSUMER PROTECTION ACT OF 1992.

Protocols

Foremost, I want to express my profound gratitude to the Nigerian

Electricity Regulatory Commission for bringing to the fore, issues of
consumers’ concerns on Power and Energy in the organization of this
National Conference on Electricity Consumers in Nigeria. It would be
recalled that these concerns informed the global action of the World
Consumer bodies who staged various campaigns to canvass for better
accessibility, affordability, sustainability and efficiency of electricity
supplies especially to the vulnerable poor of the World as the World
Consumers’ Right Day was marked in 2006. In the developing world, this
group constitutes not less than 70% of the population.

I must say that the Council has watched with pride the workings of the
Commission since its inception noting the efforts being made to ensure that
consumers have the fairest deal in the ongoing and upcoming reformation
systems in electricity power supply. We appreciate the program being put in
place for Power Distribution Companies to have structured and mandatory
consumer complaints forum. This will assure effective self regulation which
is the shortest route to optimum quality and service delivery. Consequently, I
have the greatest pleasure to be associated with your venture and to respond
enthusiastically to your invitation for me to present this paper.

In the paper, I shall attempt to give a short introduction to the Consumer

Protection Act 66 of 1992, highlight relevant legal and institutional
instruments or provisions contained therein for the protection of consumer
rights and privileges in Nigeria and finally raise issues of concern that has
caused criticisms of the Act and warranted interventions of different law
enactment and reform bodies towards the revision of the Act. I hope that at
the end, we shall have enough excitement to proffer contributions in this
Conference to make suggestions that will assure consumer satisfaction and
patronage of electricity business in Nigeria, which is the ultimate in any
progressive business enterprise.

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Brief Background to the Consumer Protection Act: With the growth of
industrial advancement and the economic boom that attended the post
second world war era, it became clear that vulnerable consumers across the
globe need some formal protection from the bourgeoning class of
entrepreneurs taking advantage of industrial revolution and renaissance to
make great wealth at the expense of the weaker consumers in the market
force equation. Equally, was the climaxing activity of pressure groups from
the academia, press, and labour etc. agitating for legal protection of
consumers. Notable heroes of this struggle, also known as consumerists,
include Ralph Nader and Esther Peterson. On March 15, 1962, the President
of United States of America President presented to the Congress the famous
Bill of Rights that heralded the birth of holistic consumer protection regime
in the world. It is pertinent to note the kernel of this enactment as depicted in
the famous quote of Mr. President where he affirmed that it was very crucial
to ensure that the extra dollar profit of the businessman was and must not be
at the expense of the blood of the consumer. Following this and the
unyielding efforts of consumerism movements across the globe to include
Consumers International, the United Nations General Assembly in 1985,
made formal Declaration on consumer rights and released Guidelines for
Member Nations’ adoption in formulating effective Consumer Protection
policies in their countries. In Nigeria, various steps were taken following
the directive of the Supreme Military Council to the Federal Ministry of
Commerce, which culminated in the promulgation of the Consumer
Protection Decree 66 in 1992 by the then President of the Federation –
General Ibrahim Babangida. This decree was published in the Laws of the
Federation of Nigeria (LFN) in 1994 though it is still popularly cited as CPC
Act 66 of 1992, hereinafter called CPCA.

Legal and Institutional Instruments (Provisions) Under the CPCA for

the Protection of Consumer Rights.

The CPCA is basically sufficient in details expected of a typical law of the

Federal Republic of Nigeria. Though enacted first by the military, it is
consistent with the Constitution of Nigeria in its legal and institutional
provisions. Its commencement date specified as 23rd November 1992
remains valid since “a statute remains in force until it expires, lapses or is
replaced.”

The Principal Provisions of the Act are in Parts I to III with substantive and
administrative clauses, Sections 1 to 24, detailing among others:

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 1. The legal establishment and composition of the body charged with
implementation of the CPCA, Section 1, Functions and Main Powers
of the Council, Sections 2 and 3, Establishment, composition and
appointment thereof of State Committees to receive, investigate and
act on complaints on consumers, subject to the general supervision of
Council, and specifics of their activities, Sections 4 and 5.
2. Subject over which complaint can be made and how complaint can be
made, Section 6. The power to use certain institutions in trade for
purpose of investigation is contained and follow up with appropriate,
just and reasonable redressal actions is provided in Section7 of the
Act.
3. Obligations of business outfit to provide public warning or notices to
the public where unforeseen hazards trail a product or service already
in the market and offence and penalty in cause of failure thereof are
spelt out in Section 9.
4. Appointment of Director General, other staff, terms and condition of
appointment thereof and power to make regulations that shall specify
conditions of service, staff appointment, promotions, discipline etc
and the process of approvals of same (Part III, Sections 22 to 24).

Although, CPCA envisages use of modern trend of using Alternative

Dispute Resolutions (ADR) of Negotiation, Mediation and Conciliation,
NMC, in solving market failure cases, Sections 2(a) and [10(1)], Sections 10
(2&3), 11, 12 and 19 criminalizes specified offences on consumer rights to
correct information or alert on goods and services, albeit, through the
Attorney General of the Federation. In order to obviate the bottleneck that
the bureaucracy of using the Attorney General could create, the Attorney
General’s fiat has been obtained to make enforcement stay in compliance
with the “speedy” intent of the CPCA in Section 2(1).

Furthermore, CPCA recognizes the vast scope of the Council’s mandate and
the need for her to work in harmony and collaboration with other
government agencies and professional bodies in establishing and use of
facilities or common procedures, also in ensuring or enforcing standards or
assessing quantum of damage or loss to consumer. Section 14 provides legal
backing for this.

The Miscellaneous Provisions of the CPCA comprise Sections 30 to 32

where the Power of Council to make Regulations, subsidiary law to give full
effects to the provisions of the CPCA and the administration thereof, and

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interpretation of certain key words used in the Act to include a simple
definition of who a consumer is. By the CPCA, “a consumer is an individual
(legal person), who purchases, uses, maintains, or disposes a product or
service”.

The CPCA made important final provision that has relevance to protecting
consumer rights and this includes financial provisions and the Schedule,
which details Proceeding of the Council.

The Consumer Protection Council Act has made very far-reaching measures
in the protection of both economic and health interest of the consumers in
Nigeria. The CPCA imposes extensive obligations on the Council to keep
continual surveillance on business practices, Section 15, and where such
business malpractices are found to be unfair and prejudicial to the economic
and health interest of consumers, the CPCA mandates the Council to nib it in
the bud before the harm manifest and where a consumer has suffered any
loss or damage as a result thereof, the Council shall provide speedy redress
to such consumer complaints. S.2 (a), (b), (d), (i), and (s).

Another very useful provision to consumers is that in S.10 of the CPCA,

which gives power to the Council to obtain satisfactory written assurance
from a person carrying on business in a manner detrimental to the interests
of consumers, to desist from such conduct.

In addition to all of the above, the most relevant and institutional instrument
as far as an individual consumer is concerned is the empowerment of
consumers under S.8 of CPCA to take a civil action against an offender for
redress in any competent court for compensation or restitution in addition to
any redress provided by the Council under the Act.

There is no gain saying that the CPCA is the only legislation in the laws of
the Federal Republic of Nigeria that makes an attempt to ensure that
Nigerian consumers are put as far practicable on the same pedestal as their
counter part in other parts of the globe.

Worthy of note however is the most recently promulgated Consumer

Protection Council Act Sales Promotion Regulations 2005, currently being
operated under its counterpart, Product and Services Monitoring and
Registration) Regulations 2005 both of which are intended to give full effect

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to the provisions of the CPCA as expressly provided for under S.31 of the
Consumer Protection Council Act.

The former is expected to curb the excess of manufacturers and promoters of

goods and services by empowering the Council to verify he genuineness of
all sales promotions and ensure that they are legal, decent, honest and
faithful to consumers. While the latter provides for the registration of
products and services with the Council so as to enable the Council perform
its statutory functions under the Act and at the same time monitor the
movement of products and provisions of services in Nigeria.

Some Concerns over and Criticisms of CPCA:

A number of concerns and criticisms have been raised over the CPCA over
the years that have necessitated proposals for an amendment of the Law.
Notable among them are:

1. Fluidity in the Provisions on State Committee:

The composition of State Committee has been criticized by many State
Governments, Constitutional lawyers and others. This has hindered the
coming on board of many State Committees. It is gladdening to note,
though, that States like Imo, Enugu and Kano are brailing the trail.

2. Largeness Council Membership:

The CPCA puts membership of Council at 43 because as of the time of its
drafting, the number of States in the Federation was 12 and each State was to
be represented in Council. However, by the time of the Act became
operational in 1999, number of States had become 36 and with addition of
FCT, Federating units are 37. This number is apparently too large for
effective management both operationally and financially and has truly
limited performance of Council. Many others also argue that the CPCA does
not delineate Council from the Executives implementing the Act.

3. Omission of Strict Liabilities to Protect Consumer Rights:

Apart from Section 8(a) of the CPCA that made light reference to redressing
investigated rights abuse, strict liabilities and specific rights are not
mentioned in the law. The definite mention of these rights and provisions for
strict liabilities are crucial success in adjudication. All these are being
addressed in the proposed amendments.

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Conclusion:
This paper has given a brief insight to the genesis of the CPCA act showing
that it was born out of international concern for fairness and best practices in
the market. It highlighted relevant legal and institutional provisions for the
protection of consumer rights and indicated concerns and criticisms that is
directing the ongoing amendment process of the current Act.

Thank you for your kind attention.