The Federal Competition and Consumer Protection Commission (FCCPC) has granted 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.
Bello stated that the commission would commence enforcement actions following the expiration of the moratorium.
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The meeting aimed to address the rising trend of unreasonable pricing of consumer goods and services, as well as the harmful practices of market associations.
Bello highlighted a discovery by the commission, where a fruit blender known as Ninja was being sold for $89 (approximately N140,000) at a popular supermarket in Texas, but the same product was priced at N944,999 in a supermarket on Victoria Island, Lagos.
He questioned the justification for such a drastic price hike compared to the price in Texas, USA. Bello noted that these unethical practices, including price fixing, are undermining 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.
”This is intended to deter all parties involved in such illicit activities. However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of 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 said.
Bello acknowledged that the government is aware of many of the issues raised by market stakeholders.
”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.
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Several market stakeholders at the engagement cited factors such as high transportation costs, insecurity, and multiple taxation as key reasons for the ongoing rise in prices of goods and services.
Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, added that charges on imported goods at the ports also contributed to the price hikes. 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 highlighted that the cost of transporting a trailer load of tires from Lagos to Abuja has skyrocketed from N450,000 to over N1 million.
Ms. Kemi Ashiri, the Liaison Manager of Flour Mills, emphasized the need for regulatory fines to be harmonized to allow businesses to thrive.
Ikenna Ubaka, representing supermarket owners, claimed that high bank interest rates exceeding 30%, along with rising rent and increased prices from distribution and supply chains, were driving up the cost of goods. He also alleged that electricity distribution companies were charging supermarkets excessively.
Mr. Solomon Ukeme, representing the Master Bakers Association, pointed out that the rapid increase in the prices of key ingredients like flour, sugar, and butter has significantly raised the cost of confectioneries.
He noted that the price of a bag of flour has surged from N34,000 to N74,000. Ukeme also identified multiple taxation as a major factor contributing to the high cost of bread.
The News Agency of Nigeria reported that various market associations also participated in the engagement.
