The Federal Competition and Consumer Protection Commission (FCCPC) has granted a one-month period for traders and market stakeholders involved in exploitative pricing to lower the prices of goods.
Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, announced this during a stakeholders meeting focused on exploitative pricing in Abuja on Thursday. Bello stated that enforcement actions will commence following the moratorium.
He explained that the meeting aimed to tackle the increasing trend of unreasonable pricing of consumer goods and services, as well as the unethical practices of market associations.
Bello highlighted the commission’s discovery that a fruit blender called Ninja was priced at $89 (N140,000.00) in a well-known supermarket in Texas, while the same product was being sold for N944,999.00 in a supermarket in Victoria Island, Lagos.
He questioned the rationale behind such a significant price increase compared to the price in Texas, USA.
Bello noted that these unethical practices, including price fixing, pose a threat to the stability of the economy.
According to Section 155, individuals or corporate entities that violate the law could face serious penalties, including hefty fines and imprisonment if convicted in court.
Bello stated that this measure aims to deter all parties from engaging in such illegal activities. However, he emphasized that the current approach is not punitive and urged all stakeholders to adopt a spirit of patriotism and cooperation.
He explained that the commission is granting a one-month moratorium in September before implementing strict enforcement.
Bello also mentioned that the government is aware of many issues raised by market stakeholders.
We acknowledge that you have valid concerns, and it is the government’s duty to address these issues. However, we also need to communicate among ourselves.
There are instances where traders collaborate to take advantage of consumers,” he stated.
Some market stakeholders who participated in the engagement mentioned that factors such as high transportation costs, insecurity, and multiple taxes are contributing to the ongoing rise in the prices of goods and services.
Ifeanyi Okonkwo, the Chairman of the National Association of Nigerian Traders, FCT Chapter, noted that charges on imported goods at the ports also contribute to rising prices.
He urged the Commission to establish a task force and involve the association in its enforcement efforts.
Mr. Emmanuel Odugwu from Kugbo Spare Parts Market pointed out that the initial cost to transport a trailer load of tires from Lagos to Abuja was N450,000, but it has now exceeded one million naira.
Additionally, Ms. Kemi Ashiri, the Liaison Manager at Flour Mills, stated that regulatory fines need to be standardized for businesses to succeed.
Ikenna Ubaka, speaking on behalf of supermarket owners, claimed that interest rates from banks exceed 30 percent, and that increases in rent and distribution supply chain costs are contributing to the high prices of goods.
He also accused electricity distribution companies of charging supermarkets excessively.
Mr. Solomon Ukeme, representing the Master Bakers Association, mentioned that the rapid rise in prices of key ingredients such as flour, sugar, and butter is a significant factor in the increased cost of confectioneries.
He noted that a bag of flour that previously sold for N34,000 is now priced at N74,000. He also stated that multiple taxation is a major contributor to the high cost of bread.
The News Agency of Nigeria reported that various market associations were present at the engagement.
