SS2 Commerce Lesson Note on Government Regulation of Business

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Government Regulation of Business

Government regulates business in Nigeria in the following ways:

1. Business registration/License: Government ensures that business in Nigeria is registered either as sole trading, partnership, public company or cooperative. This is done in order to control and monitor business activities.
2. Patent Rights: This is an exclusive right given to an inventor that excludes any other person from producing their work or invention without getting permission from the original owners. This is to encourage innovation and allow the inventor to recoup his research cost.
3. Trademarks: A trademark is a name, symbol, design or mark given to a product by the producer to identify or distinguish it from the product of others. Any infringement on the trademark law can lead to litigation and claiming of damages. Examples of trademarks are Jik, Parazone for cleaning and washing.
4. Copyrights: This is the exclusive right given to an author, composer, musician, photographer etc to produce his work within a specific period of time. This is to protect their work from unlawful reproduction from unauthorised persons.
5. Approval of Business Location: Government can also regulate and control business by giving approval for the location of business enterprise. Sometime industrial areas are established.
6. Publication of Accounts: Public Liability Companies are mandated to publish their annual accounts for public consumption. This is to prevent fraudulent practices.
7. Taxing Company’s profit: Business can be regulated by introducing tax on the profit of some business enterprises, while poor companies may have their tax reduced through concession in order to encourage them.
8. Use of standard weight and measure: All business enterprises are mandated to use standard weights and measures for the products offered for sale, e.g. in soft drink industry there are 25cl, 30cl, 35cl, etc.
9. Ensure production of safe goods: Another way is to ensure that goods offered for consumption are safe and of high quality.

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