Inflation: FCCPC Gives Traders One-Month Notice To Crash Prices

ABUJA, FCT, NIGERIA – The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium to traders and other market stakeholders engaged in exploitative pricing, demanding they reduce the prices of goods.

The newly appointed Executive Vice Chairman of the FCCPC, Tunji Bello, announced this during a one-day stakeholder engagement on exploitative pricing held on Thursday, August 29, 2024, in Abuja.

Bello stated that enforcement actions will commence after the moratorium period. He emphasized that the meeting aimed to address the troubling trend of unreasonable pricing of consumer goods and services, as well as the problematic practices of market associations.

He highlighted an example of pricing disparity by describing how a fruit blender known as Ninja was priced at 89 dollars (approximately N140,000) at a popular supermarket in Texas, whereas the same product was listed for N944,999 at a supermarket in Victoria Island, Lagos. Bello questioned the rationale behind such a significant price difference.

Bello noted that these unethical practices, including price fixing, pose a threat to economic stability. “Under Section 155, violators, whether individuals or corporate entities, face severe penalties including substantial fines and imprisonment if found guilty by the court,” he said. “This is intended to deter all parties involved in such illicit activities.”

He reassured stakeholders that the current approach was not punitive. “I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation,” Bello added. “In this spirit, we are giving a one-month moratorium (September) before the Commission will begin strict enforcement.”

Bello acknowledged the government’s awareness of the issues raised by market stakeholders. “We have heard your genuine concerns, and the government has a responsibility to address them, but let us also reflect on our own practices,” he said. “There are instances of collusion among traders to exploit consumers.”

Several market stakeholders who participated in the engagement highlighted factors contributing to the rising prices of goods and services, including high transportation costs, insecurity, and multiple taxation.

Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, noted that charges on imported goods at the ports also contributed to price increases. He urged the Commission to establish a task force and involve the association in its enforcement efforts.

Emmanuel Odugwu from the Kugbo Spare Parts market reported that the cost of transporting a trailer load of tyres from Lagos to Abuja had surged from N450,000 to over one million naira.

Kemi Ashiri, Liaison Manager at Flour Mills, suggested that regulatory fines should be harmonized to support business sustainability.

Ikenna Ubaka, speaking on behalf of supermarket owners, claimed that high bank interest rates (over 30 percent), rent increases, and higher costs from distribution and supply chains were driving up the prices of goods. Ubaka also alleged that electricity distribution companies were charging supermarkets excessively.

Solomon Ukeme, representing the Master Bakers Association, attributed the rising cost of confectioneries to significant price increases in key ingredients like flour, sugar, and butter. He noted that the price of a bag of flour had risen from N34,000 to N74,000, with multiple taxation also contributing to the high cost of bread.

Various market associations were also present at the engagement. © NAN