The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month grace period to traders and other market participants engaged in exploitative pricing practices, urging them to lower the prices of goods.
During a stakeholder meeting focused on exploitative pricing in Abuja on Thursday, the newly appointed Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, emphasized that the commission would commence enforcement actions once the moratorium period ends.
Bello highlighted the growing trend of unreasonable price increases on consumer goods and services, as well as concerning practices within market associations.
He provided an example of a fruit blender brand, Ninja, which was being sold for $89 (around ₦140,000) at a popular Texas supermarket, yet was priced at an exorbitant ₦944,999 in a Lagos supermarket.
Questioning the rationale behind such a drastic price hike, Bello warned that such practices, including price-fixing, pose a threat to economic stability.
“Under Section 155, offenders—whether individuals or corporate entities—could face significant penalties, including hefty fines and imprisonment if convicted,” Bello noted. “However, our approach today is not punitive. We urge all stakeholders to adopt a spirit of patriotism and cooperation.”
Bello announced that the government would closely monitor the market for compliance, with enforcement actions set to begin after September.
He acknowledged that the government was aware of the challenges faced by market participants but urged them to avoid unfair practices.
“We’ve listened to your concerns, and while the government recognizes the genuine issues, it is imperative that we also address the exploitation of consumers,” Bello stated.
Representatives from various market associations attended the engagement, with many citing factors such as high transportation costs, insecurity, and multiple taxation as key contributors to the continuous rise in prices.
Ifeanyi Okonkwo, Chairman of the FCT Chapter of the National Association of Nigerian Traders, pointed out that high import duties at ports were a significant factor in price hikes. He urged the FCCPC to establish a task force that would include representatives from their association to ensure effective enforcement.
Other stakeholders, such as Emmanuel Odugwu from the Kugbo Spare Parts market, noted that transportation costs for a trailer load of goods from Lagos to Abuja had more than doubled, while Flour Mills Liaison Manager, Ms. Kemi Ashiri, called for harmonization of regulatory fines to support business growth.
Supermarket representative Ikenna Ubaka attributed the high cost of goods to factors like steep bank interest rates, rent increases, and supply chain price hikes, while Solomon Ukeme from the Master Bakers Association cited the sharp rise in the cost of essential baking ingredients as a key factor driving up bread prices.
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