Abuja — The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium to traders and market stakeholders involved in exploitative pricing, urging them to reduce the prices of goods and services. The moratorium, which extends through September, will be followed by strict enforcement measures against violators starting in October.
This announcement was made by the newly appointed Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, during a one-day stakeholders’ engagement on exploitative pricing held in Abuja on Thursday.
Bello expressed concern over the growing trend of unreasonable pricing of consumer goods and services, highlighting that the commission had uncovered alarming discrepancies in the pricing of certain products. He cited the example of a fruit blender, known as Ninja, being sold for $89 (N140,000) at a supermarket in Texas, USA, while the same product was priced at N944,999 at a supermarket in Victoria Island, Lagos.
“The basis for such an arbitrary hike in price is unfounded and poses a serious threat to the stability of our economy,” Bello stated.
He emphasized that under Section 155 of the law, individuals or corporate entities found guilty of price fixing and other exploitative practices could face severe penalties, including substantial fines and imprisonment. However, Bello noted that the commission’s current approach is not punitive but rather aimed at fostering cooperation and patriotism among market stakeholders.
“It is in this spirit that we are giving a moratorium of one month (September) before the commission will start firm enforcement,” Bello said, adding that the government is aware of the challenges faced by market stakeholders and is committed to addressing them.
During the engagement, various market stakeholders shared their perspectives on the factors contributing to the continuous increase in prices of goods and services. They pointed to high transportation costs, insecurity, multiple taxation, and exorbitant charges on imported goods as key issues.
The Chairman of the National Association of Nigerian Traders, FCT Chapter, Mr. Ifeanyi Okonkwo, called for the establishment of a task force to involve the association in the commission’s enforcement activities. He highlighted that charges on imported goods at the ports significantly contribute to the price hikes.
Other stakeholders, including representatives from Kugbo Spare Parts Market, Flour Mills, and supermarket owners, echoed similar concerns, noting that transportation costs, bank interest rates, and high electricity tariffs are major factors driving up prices.
For example, Mr. Emmanuel Odugwu from Kugbo Spare Parts Market disclosed that the cost of transporting a trailer load of tires from Lagos to Abuja had more than doubled, from N450,000 to over N1 million. Similarly, Ms. Kemi Ashiri, Liaison Manager at Flour Mills, urged for the harmonization of regulatory fines to support business sustainability.
Supermarket representative Ikenna Ubaka and Master Bakers Association representative Solomon Ukeme also highlighted the impact of rising costs of raw materials, including flour, sugar, and butter, as well as multiple taxation on the high cost of bread and other confectioneries.
As the one-month moratorium begins, the FCCPC urges all market stakeholders to adjust their pricing strategies accordingly to avoid punitive measures when enforcement commences in October.
The engagement saw the participation of various market associations, all of whom pledged to work with the FCCPC in ensuring fair pricing practices across the country.