FCCPC Grants One-Month Moratorium to Traders on Exploitative Pricing, Warns of Enforcement
Abuja, Nigeria – August 29th 2024
The Federal Competition and Consumer Protection Commission (FCCPC) has announced a one-month moratorium for traders and market stakeholders engaged in exploitative pricing, urging them to reduce the inflated prices of goods. The Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, made this announcement during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Mr. Bello emphasized that the Commission will commence enforcement actions immediately after the moratorium period ends. He explained that the meeting was organized to address the rising trend of unreasonable pricing of consumer goods and services, as well as the unethical practices by certain market associations.
FCCPC’s Stance on Exploitative Pricing
During his remarks, Bello highlighted a concerning finding by the Commission: a fruit blender brand, Ninja, which is priced at $89 (approximately N140,000) in a well-known supermarket in Texas, was being sold for an exorbitant N944,999 in a supermarket located in Victoria Island, Lagos.
Bello questioned the rationale behind such a significant price hike compared to the cost in the United States, describing the practice as arbitrary and unjustifiable. He warned that such unwholesome practices, including price fixing, pose a serious 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. “These measures are intended to deter all parties involved in these illicit activities. However, our approach today is not punitive. I call on all stakeholders to embrace the spirit of patriotism and cooperation. It is in this spirit that we are providing a one-month moratorium before the Commission begins strict enforcement.”
Stakeholders’ Insights
Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, also spoke at the event, noting that high charges on imported goods at the ports have significantly contributed to the surge in prices. He urged the FCCPC to establish a task force and include the association in its enforcement efforts.
In response, the FCCPC boss acknowledged the concerns raised by market stakeholders, affirming that the government is aware of the challenges they face. “We have heard your genuine concerns, and the government has a responsibility to address these issues. However, traders must also refrain from engaging in exploitative practices that harm consumers,” Bello added.
Other market stakeholders at the engagement cited factors such as high transportation costs, insecurity, and multiple taxation as contributing to the continuous rise in the prices of goods and services.