In a bid to curb the escalating trend of price gouging in Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to traders and other market stakeholders. The commission has given these entities a one-month moratorium to significantly reduce the prices of goods or face severe consequences.
The newly appointed Executive Vice Chairman of the FCCPC, Tunji Bello, made this announcement during a one-day stakeholders engagement on exploitative pricing held in Abuja. Bello emphasized that the commission would not hesitate to enforce the law after the moratorium period, signaling a firm stance against unscrupulous pricing practices.
The meeting was convened to address the growing concern over the unreasonable pricing of consumer goods and services, as well as the unwholesome practices of market associations. Bello highlighted a specific instance where a fruit blender known as Ninja was being sold at a significantly higher price in a Nigerian supermarket compared to its price in the United States. This stark contrast raised questions about the basis for such arbitrary price hikes.
The FCCPC’s investigation revealed that unwholesome practices, including price fixing, were threatening the stability of the Nigerian economy. Bello warned that violators, whether individuals or corporate entities, would face severe penalties, including substantial fines and imprisonment, if found guilty by the court. This tough stance is intended to deter all parties involved in such illicit activities.
However, the commission’s approach is not solely punitive. Bello called on all stakeholders to embrace the spirit of patriotism and cooperation. He emphasized that the moratorium was an opportunity for traders to voluntarily adjust their pricing practices.
The government is aware of the challenges faced by market stakeholders, including the high cost of transportation, insecurity, and multiple taxation. However, Bello also highlighted the need for introspection among traders, as some have been engaging in gang-ups to exploit consumers.
Market stakeholders who participated in the engagement provided insights into the factors driving the continuous increase in prices. The Chairman of the National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, pointed out that charges on imported goods at the ports contributed significantly to the hike in prices.
Other stakeholders raised concerns about the exorbitant cost of transportation, particularly for essential goods like spare parts. Emmanuel Odugwu from Kugbo Spare Parts market noted that the cost of transporting a trailer load of tyres from Lagos to Abuja had increased by over 100%.
The Liaison Manager of Flour Mills, Ms. Kemi Ashiri, called for harmonization of fines imposed by regulators to create a more conducive business environment. Representatives of supermarket owners and master bakers also highlighted challenges such as high interest rates, rent increments, and increased costs from distribution chains.
The rapid increment of major ingredients like flour, sugar, and butter has significantly impacted the cost of confectioneries. Solomon Ukeme, representing the Master Bakers Association, revealed that the price of a bag of flour had increased by over 100% in recent times.
Multiple taxation was also identified as a major contributor to the high cost of bread. Various market associations attended the engagement to voice their concerns and seek solutions.
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The FCCPC’s warning to traders comes at a time when Nigerians are grappling with the rising cost of living. The commission’s commitment to addressing price gouging and ensuring fair competition is crucial for the well-being of consumers.
