The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month ultimatum to traders and market stakeholders involved in exploitative pricing to reduce the prices of goods or face enforcement actions. This directive was announced by the Executive Vice-Chairman of the FCCPC, Tunji Bello, during a one-day stakeholders’ engagement on exploitative pricing in Abuja on Thursday.
In his statement, Bello highlighted the commission’s growing concern over the unreasonable pricing of consumer goods and services, along with the unscrupulous practices of certain market associations. He emphasized that the FCCPC would begin enforcement measures immediately after the notice period expires.
“The issue of critical national importance today is the increasing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing,” Bello stated. He added that the FCCPC had conducted extensive market surveys nationwide in recent weeks, revealing disturbing findings that necessitate urgent action.
Bello acknowledged the challenges posed by an unfavorable exchange rate, which has impacted production costs in local currency. However, he pointed out that the price margins for both imported and locally produced goods were often unreasonable and excessively inflated, particularly in the retail sector. He condemned the practices of price fixing and gouging by some market associations as anti-consumer.
The FCCPC’s warning comes as Nigeria grapples with a high inflation rate, which the National Bureau of Statistics (NBS) recently reported at 33.40 percent, with food inflation surpassing 40 percent. The situation has worsened since President Bola Tinubu’s announcement on May 29, 2023, to end fuel subsidies.
Bello further stated that the FCCPC is prepared to invoke the full weight of the law against those found guilty of exploiting consumers. “Price gouging and price fixing are not only unethical but patently illegal under the FCCPA,” he warned, while also emphasizing the importance of dialogue and collaboration in fostering a fair marketplace.
“Our approach today is not punitive or adversarial… dialogue and collaboration are equally important tools in fostering a fair marketplace,” Bello concluded, signaling the FCCPC’s readiness to work with stakeholders to address the issue of exploitative pricing.
