FG to Traders: “You Have One Month to Lower Prices or Face Enforcement”

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month notice to traders and market stakeholders involved in exploitative pricing, demanding a significant reduction in the prices of goods and services. The directive, announced by the FCCPC’s Executive Vice-Chairman, Mr. Tunji Bello, came during a stakeholders’ engagement on exploitative pricing held in Abuja.

Mr. Bello emphasized that the FCCPC will begin enforcement after the notice period expires, stressing the urgency of addressing the growing trend of unreasonable pricing and unwholesome practices among market associations.

“The rampant issue of unreasonable pricing of consumer goods and services is a matter of national importance,” Bello stated. “We have conducted extensive market surveys, and our findings reveal disturbing levels of price inflation, particularly in the retail segment.”

Bello highlighted instances of price gouging, especially among sellers of imported and locally produced goods, and noted the disproportionate margins in pricing. He cited a specific case where a Ninja fruit blender sold for $89 (approximately N140,000) in the United States, was listed at N944,999 in a Lagos supermarket, marking over a 500% increase.

The FCCPC also uncovered evidence of price-fixing by market associations, where businesses collude to set prices, undermining healthy competition. Bello warned that such practices, along with price gouging during economic crises, are illegal and would face severe penalties under the FCCPA.

While the commission has opted for dialogue and collaboration to address the issue, Bello cautioned that enforcement will follow if prices are not adjusted. He urged stakeholders to act in the spirit of patriotism, reducing prices to reflect the government’s recent efforts to ease economic challenges.

Market stakeholders, however, cited various challenges as reasons for the high prices, including rising transportation costs, insecurity, and multiple taxation. Representatives from the National Association of Nigerian Traders and other market groups appealed for government intervention in addressing these underlying issues.

In response, Dr. Tommy Okon, 1st Deputy President of the Trade Union Congress of Nigeria (TUC), expressed skepticism about the effectiveness of the FCCPC’s directive, noting that without addressing root causes such as insecurity and high transportation costs, price reduction within a month remains unlikely.

Public analysts and legal experts have also expressed concerns about the potential unintended consequences of the FCCPC’s directive. Some argue that direct price controls could disrupt market dynamics, leading to shortages and harming small businesses.

As the deadline approaches, the FCCPC has called on all stakeholders to cooperate in creating a fair and competitive marketplace, warning of strict penalties for non-compliance.