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 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.
According to Mr. Bello, the commission will begin strict enforcement following the expiration of the moratorium.
He stated that the purpose of the meeting was to address the rising trend of unreasonable pricing of consumer goods and services, as well as the unwholesome practices of market associations.
Bello highlighted a significant disparity in the pricing of consumer goods, citing the example of a Ninja fruit blender, which is sold for $89 (approximately ₦140,000) at a popular supermarket in Texas but is priced at ₦944,999 in a supermarket in Victoria Island, Lagos.
He questioned the justification for such a drastic price hike compared to the U.S. price, describing these practices as a threat to 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,” Bello stated.
“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.”
Acknowledging the concerns raised by market stakeholders, Bello assured that the government is aware of these issues and has a responsibility to address them.
However, he also emphasized the need for traders to self-regulate, noting that there are “gang-ups to exploit consumers.”
During the engagement, various market stakeholders attributed the continuous increase in prices to factors such as high transportation costs, insecurity, and multiple taxation.
Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, highlighted the impact of charges on imported goods at the ports and appealed to the FCCPC to establish a task force involving the association for enforcement.
Mr. Emmanuel Odugwu from Kugbo Spare Parts Market explained that the cost of transporting a trailer load of tyres from Lagos to Abuja has risen from ₦450,000 to over one million naira.
Ms. Kemi Ashiri, Liaison Manager of Flour Mills, pointed out that the harmonization of fines by regulators is necessary for businesses to thrive.
Representing supermarket owners, Ikenna Ubaka mentioned that high interest rates from banks, rent increments, and price hikes by distribution chains contribute to the high cost of goods.
He also raised concerns about exorbitant electricity charges from distribution companies.
Mr. Solomon Ukeme, representing the Master Bakers Association, noted that the rising cost of major ingredients like flour, sugar, and butter has led to higher confectionery prices.
He added that a bag of flour that once sold for ₦34,000 now costs ₦74,000, with multiple taxation being a significant factor in the high cost of bread.
The News Agency of Nigeria reports that various market associations were present at the engagement.
(NAN)
