FCCPC Issues One-Month Moratorium for Traders to Lower Exploitative Prices

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 in Abuja on Thursday.....KINDLY READ THE FULL STORY HERE▶

Bello emphasized that the commission will commence strict enforcement actions following the moratorium period. The meeting aimed to address the growing concerns over unreasonable pricing of consumer goods and services, as well as the unethical practices by certain market associations.

Citing an example, Bello highlighted a case where a fruit blender, branded as Ninja, was sold for $89 (approximately N140,000) in a Texas supermarket, while the same product was priced at an exorbitant N944,999 in a Lagos supermarket. He questioned the justification for such a steep price hike and pointed out that these unwholesome practices, including price fixing, pose a significant threat to the economy’s stability.

Under Section 155 of the relevant legislation, individuals and corporate entities found guilty of such violations face severe penalties, including hefty fines and imprisonment. However, Bello clarified that the current approach is not punitive. “We are giving a one-month moratorium in the spirit of patriotism and cooperation before the commission starts firm enforcement,” he said.

Bello acknowledged the challenges faced by market stakeholders, including high transportation costs, insecurity, and multiple taxation, which contribute to rising prices. The Chairman of the National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, mentioned that port charges on imported goods also play a role in escalating prices. He urged the commission to establish a task force and involve the association in its enforcement activities.

Representatives from various market sectors shared their perspectives at the engagement. Mr. Emmanuel Odugwu from Kugbo Spare Parts Market noted that the cost of transporting a trailer load of tyres from Lagos to Abuja has more than doubled, now exceeding N1 million. Similarly, Ms. Kemi Ashiri, Liaison Manager at Flour Mills, called for the harmonization of regulatory fines to foster business growth.

Supermarket owners, represented by Ikenna Ubaka, cited high bank interest rates, rent increases, and supply chain price hikes as major factors behind the soaring cost of goods. They also raised concerns over exorbitant charges from electricity distribution companies. Mr. Solomon Ukeme, representing the Master Bakers Association, pointed out that the rising costs of key ingredients like flour, sugar, and butter have significantly impacted the price of baked goods.

The News Agency of Nigeria reports that various market associations were in attendance at the engagement, reflecting the widespread concern over the issue of exploitative pricing.