The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium to traders and market stakeholders engaged in exploitative pricing, urging them to reduce the prices of goods.
This announcement was made by the newly appointed Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Bello emphasized that the moratorium would allow traders to adjust their prices before the Commission begins strict enforcement measures. He highlighted the growing trend of unreasonable pricing of consumer goods and services, as well as the detrimental practices of market associations, as key concerns for the FCCPC.
Illustrating the issue, Bello cited the example of a fruit blender known as Ninja, which was sold at a popular supermarket in Texas for $89 (approximately N140,000). In contrast, the same product was being sold for N944,999 in a supermarket on Victoria Island, Lagos. He questioned the justification for such a drastic price increase, pointing out that such practices threaten the stability of the economy.
“Under Section 155, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if found guilty by the court,” Bello warned.
However, he noted that the current approach is not punitive, urging stakeholders to embrace patriotism and cooperation.
“It is in this spirit that we are giving a moratorium of one month (September) before the Commission will start firm enforcement,” he added.
Bello acknowledged the challenges raised by market stakeholders, stating that the government is aware of the issues and has a responsibility to address them. However, he also called on traders to self-regulate and avoid exploiting consumers.
During the engagement, various market stakeholders explained the reasons behind the continuous increase in prices.
Mr. Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, attributed the price hikes to high transportation costs, insecurity, and multiple taxation. He also pointed to high charges on imported goods at the ports as a contributing factor.
Mr. Emmanuel Odugwu from Kugbo Spare Parts Market shared that the cost of transporting a trailer load of tires from Lagos to Abuja has more than doubled, rising from N450,000 to over N1 million.
Ms. Kemi Ashiri, the Liaison Manager of Flour Mills, highlighted that fines imposed by regulators needed to be harmonized for businesses to thrive. Ikenna Ubaka, representing supermarket owners, blamed high interest rates from banks, rent increases, and hikes in prices by supply chains for the high cost of goods. He also mentioned that electricity distribution companies were charging supermarkets exorbitantly.
Mr. Solomon Ukeme, representing the Master Bakers Association, cited the rapid increase in the cost of major ingredients like flour, sugar, and butter as reasons for the high cost of confectioneries. He noted that the price of a bag of flour had risen from N34,000 to N74,000. Ukeme also identified multiple taxation as a significant contributor to the high cost of bread.
The engagement saw participation from various market associations, all of whom expressed concerns about the economic challenges impacting their businesses.
The FCCPC’s initiative aims to address these issues while protecting consumers from exploitative practices.