The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month deadline for traders and market stakeholders engaged in exploitative pricing to lower the costs of goods. This directive was announced 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 emphasized that the commission would begin strict enforcement following the one-month moratorium. The meeting was convened to address the growing trend of unreasonable pricing of consumer goods and services and the unethical practices by market associations.
In illustrating the severity of the issue, Bello cited an example where a Ninja fruit blender, priced at $89 (approximately ₦140,000) in a popular supermarket in Texas, was being sold for a staggering ₦944,999 at a supermarket in Victoria Island, Lagos. He questioned the rationale behind such an exorbitant price difference.
Bello warned that such practices, including price fixing, are threatening 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,” he stated. However, he added that the commission’s current approach is not punitive but rather aimed at fostering a spirit of patriotism and cooperation among stakeholders.
In light of this, Bello announced a moratorium of one month (September) before the commission would commence firm enforcement actions. He acknowledged the concerns raised by market stakeholders, including issues such as high transportation costs, insecurity, and multiple taxation, which contribute to the rising prices of goods and services.
Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders (FCT Chapter), highlighted that charges on imported goods at the ports also play a significant role in the price hikes. Okonkwo urged the FCCPC to establish a task force and involve the association in its enforcement activities.
Other stakeholders echoed similar sentiments. Emmanuel Odugwu from Kugbo Spare Parts Market noted that the cost of transporting a trailer load of tires from Lagos to Abuja has surged from ₦450,000 to over ₦1 million. Ms. Kemi Ashiri, Liaison Manager of Flour Mills, called for the harmonization of regulatory fines to help businesses thrive. Meanwhile, Ikenna Ubaka, speaking on behalf of supermarket owners, pointed out that exorbitant bank interest rates, rent increases, and supply chain price hikes are major contributors to the high cost of goods. Additionally, he noted that electricity distribution companies are charging supermarkets at excessive rates.
Representing the Master Bakers Association, Mr. Solomon Ukeme attributed the rising cost of bread to the rapid increase in the prices of essential ingredients like flour, sugar, and butter. He cited the example of flour, which has risen from ₦34,000 per bag to ₦74,000, and also pointed to multiple taxation as a key factor driving up prices.
The News Agency of Nigeria (NAN) reports that various market associations participated in the engagement, highlighting the widespread concern over the issue of exploitative pricing.
