Nigeria’s Consumer Protection Commission Issues One-Month Ultimatum to Traders on Exploitative Pricing
The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month ultimatum to traders and market stakeholders to reduce the inflated prices of goods.
The directive was delivered by the Executive Vice-Chairman of the FCCPC, Tunji Bello, during a one-day stakeholders’ engagement on exploitative pricing held in Abuja.
According to a statement released by the commission on Thursday, Bello emphasised that the FCCPC would commence enforcement actions immediately following the expiration of the notice.
The engagement was convened to address the alarming increase in unreasonable pricing of consumer goods and services, as well as the unwholesome practices prevalent among market associations.
“The issue of critical national importance today is the growing 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 further highlighted that the FCCPC, as a statutory body charged with protecting consumer rights, could not permit these unhealthy trends to persist.
Bello revealed that the commission had conducted extensive and discreet market surveys across the country in recent weeks.
The findings, according to him, were “quite disturbing,” underscoring the gravity of the situation and the urgency of collective action to curb the trend.
“We recognise that an unfavourable exchange rate has negatively impacted the cost of production in local currency,” Bello acknowledged. “However, the margin in pricing goods and services is unreasonable or excessive in several cases.”
The FCCPC’s investigation noted that the margins on imported goods were particularly disproportionate, with locally produced goods also experiencing excessive inflation.
This situation was found to be especially pronounced in the retail sector, where patterns of price fixing, price gouging, and other anti-consumer practices by some market associations were identified.
This development comes on the heels of a recent report by the National Bureau of Statistics (NBS), which pegged the inflation rate at 33.40%, with food inflation exceeding 40%.
The high inflation rate has been exacerbated since President Bola Tinubu’s announcement on May 29, 2023, ending fuel subsidies.
Bello also made it clear that the FCCPC would not hesitate to invoke the full force 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 asserted. “The FCCPC has the will and the capacity to enforce the law against those culpable of exploiting consumers.”
However, Bello stressed that the commission’s current approach was not intended to be punitive or adversarial.
“Dialogue and collaboration are equally important tools in fostering a fair marketplace,” he added, urging all stakeholders to work together to restore fairness in the pricing of goods and services.
The FCCPC’s ultimatum signals a significant step in addressing the growing concerns over the rising cost of living in Nigeria and protecting the rights of consumers across the nation.
