By Olugbenga Adebamiwa
Nigeria’s economy is entering a new phase, with huge investments in refining, energy transition, rail transport, and infrastructure. These developments bring hope of jobs, cheaper goods, and stronger growth. But as one or two players begin to dominate critical sectors, an important question emerges, is the country building an economy for everyone, or one controlled by a few giants? The answer will shape Nigeria’s future.
Industrial unions are already raising alarms. A senior official of NUPENG, who asked not to be named, noted that an industrial strike in oil or gas supply could easily paralyze the country if there are no alternatives. “When competition is weak, the nation becomes vulnerable,” he said. “We need multiple suppliers, multiple investors, and multiple options. Otherwise, we are playing with fire.” His warning highlights a reality, monopolies create risks that extend beyond the boardroom and into everyday life.
Economists agree. Dr. Adewale Fashola, a Lagos-based analyst, explains it this way “Competition is the shock absorber of any economy. When one company controls too much, even a small disruption becomes a national crisis. That’s why strong nations spread opportunities across many businesses.” For him, antitrust measures are not about hostility to success but about building resilience in the system.
History backs up these concerns. In the United States during the 1990s, regulators challenged a global technology company for tying its browser to its operating system, a move that shut out competitors. Courts stepped in to preserve consumer choice, and innovation flourished as a result. Long before that, in 1911, America’s Supreme Court broke up a powerful oil monopoly that controlled nearly all supply. That decision created space for dozens of new players, many of which later grew into today’s energy giants.
Closer to home, Nigeria has also felt the weight of monopolistic practices. In the power sector, restrictive import rules once favored certain generator suppliers, preventing others from entering the market. The rail industry, long held under monopoly, has struggled to keep up with demand. In both cases, the absence of healthy competition slowed innovation and discouraged investment.
Supporters of dominant players argue that monopolies bring stability and cheaper prices in the short term. Nigerians, for instance, have welcomed reports of lower pump prices due to new refining capacity. But consumer advocate Hauwa Ibrahim warns that such benefits may be temporary. “It feels good at first,” she explained, “but once competitors are eliminated, the dominant player can set the rules. Consumers lose choice, and smaller businesses die off. The long-term cost is always higher than people expect.”
This is why many policy experts are calling for Nigeria to adopt strong antitrust laws. Such laws are not new or radical, they are common in advanced economies and serve as guardrails to keep markets open. “Think of it like football,” says Prof. Chijioke Nnanna of the University of Nigeria. “The referee is not against any team. His role is to make sure no one cheats, no one holds the ball forever, and everyone has a fair chance to play. That’s how the game and the economy stays exciting.”
Antitrust legislation would also protect smaller businesses, which are often the real drivers of innovation and employment. According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), SMEs contribute nearly half of the country’s GDP and employ over 80% of the workforce. If monopolies choke them out, Nigeria risks stifling the very sector that sustains most citizens. “We can’t let big money block small ambition,” said Dr. Fashola. “That would be economic suicide.”
But the conversation goes beyond economics. Monopolies, whether private or state-owned, often wield outsized political influence. They shape policy to their advantage, sponsor legislation that protects their dominance, and in some cases, blur the line between corporate power and national governance. For a country still consolidating its democracy, the danger of private empires is one that must be taken seriously.
Nigeria stands at a turning point. The nation can either allow monopolies to deepen their hold, risking future crises and political capture, or it can take bold steps to ensure fair competition. The choice is not between growth and regulation, but between growth for a few and growth for all. Strong antitrust laws, fairly enforced, would not punish ambition, they would protect opportunity. That, in the end, is how Nigeria can build an economy that is not only strong but also just.
©️ Adebamiwa Olugbenga Michael
