The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium to traders and market stakeholders involved 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.
Mr. Bello emphasised that the Commission will begin enforcement actions after the moratorium. “Our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation,” he stated. He added that the meeting aimed to address the growing trend of unreasonable pricing of consumer goods and services and the unwholesome practice of market associations.
The FCCPC’s investigation revealed a stark example of exploitative pricing: a Ninja fruit blender sold for $89 (N140,000) at a popular supermarket in Texas was being sold for N944,999 in a supermarket in Victoria Island, Lagos. Mr. Bello questioned the justification for such an extreme price increase compared to the Texas market. “Such unethical practices, including price fixing, pose a threat to the stability of the economy,” he noted.
Under Section 155 of the FCCPC Act, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if found guilty by the court. “This is intended to deter all parties involved in such illicit activities,” Mr. Bello explained.
The government is aware of the issues raised by market stakeholders, Mr. Bello acknowledged. “We have heard and you have genuine issues, and the government has the responsibility to address the problems, but generally, let us talk to ourselves too. There are also gang-ups to exploit consumers by traders,” he said.
Market stakeholders at the engagement cited various reasons for the continuous increase in prices of goods and services, including high transportation costs, insecurity, and multiple taxation. Mr. Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, pointed out that charges on imported goods at the ports significantly contribute to the rising prices. He appealed to the Commission to set up a task force and involve the association in its enforcement activities.
Mr. Emmanuel Odugwu from Kugbo Spare Parts market highlighted the increased cost of transporting goods. “The initial cost of transporting a trailer load of tyres from Lagos to Abuja was N450,000, but now it costs over one million naira,” he said.
Ms. Kemi Ashiri, Liaison Manager at Flour Mills, called for the harmonisation of fines by regulators to help businesses thrive. Ikenna Ubaka, representing supermarket owners, cited high bank interest rates, rent increments, and price hikes by distribution and supply chains as reasons for the high cost of goods. He also alleged that electricity distribution companies were charging supermarkets exorbitantly.
Mr. Solomon Ukeme of the Master Bakers Association noted that the rapid increase in the prices of major ingredients like flour, sugar, and butter has contributed to the high cost of confectioneries. “A bag of flour that was formerly sold for N34,000 is now being sold for N74,000,” he said, adding that multiple taxation is also a major cause of the high cost of bread.
Various market associations attended the engagement.
