The Federal Competition and Consumer Protection Commission (FCCPC) has granted a one-month grace period to traders and market stakeholders involved in exploitative pricing to reduce the prices of goods.
Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, announced this during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Bello stated that the commission would begin enforcement actions after the moratorium period.
He explained that the meeting aimed to address the increasing trend of unreasonable pricing of consumer goods and services, as well as the unethical practices of market associations.
Bello highlighted the commission’s discovery that a Ninja fruit blender, sold for $89 (₦140,000) at a popular supermarket in Texas, was being sold for ₦944,999 at a supermarket in Victoria Island, Lagos.
Bello questioned the justification for such a drastic price increase compared to the U.S. price.
He noted that such practices, including price fixing, are jeopardizing the economy’s stability.
“Under Section 155, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if convicted by the court.
“This measure is designed to deter those involved in these illicit activities. However, our approach today is not punitive.
I urge all stakeholders to act with patriotism and cooperation.
“In this spirit, we are granting a one-month moratorium (September) before the commission commences strict enforcement,” he said.
Bello acknowledged that the government is aware of the issues raised by market stakeholders.
“We understand your concerns, and the government has a duty to address them.
However, we must also hold ourselves accountable.
“There are instances where traders conspire to exploit consumers,” he said.
Some market stakeholders at the engagement cited high transportation costs, insecurity, and multiple taxation as reasons for the continuous rise in the prices of goods and services.
Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, noted that charges on imported goods at the ports also contribute to price hikes.
Okonkwo urged the commission to establish a task force and involve the association in enforcement activities.
Mr. Emmanuel Odugwu from Kugbo Spare Parts Market explained that the cost of transporting a trailer load of tires from Lagos to Abuja, which initially was ₦450,000, has now risen to over ₦1 million.
Flour Mills Liaison Manager, Ms. Kemi Ashiri, suggested that fines imposed by regulators should be harmonized to help businesses thrive.
Speaking on behalf of supermarket owners, Ikenna Ubaka alleged that high-interest rates from banks, rent increases, and price hikes by distribution and supply chains are contributing to the high cost of goods.
Ubaka also claimed that electricity distribution companies were charging supermarkets exorbitant rates.
Mr. Solomon Ukeme, representing the Master Bakers Association, pointed out that the rapid increase in the prices of major ingredients like flour, sugar, and butter is driving up the cost of baked goods.
He mentioned that a bag of flour, previously sold for ₦34,000, is now being sold for ₦74,000, with multiple taxation being a significant factor in the high cost of bread.
The News Agency of Nigeria (NAN) reported that various market associations attended the engagement.
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