The Federal Competition and Consumer Protection Commission (FCCPC) has provided further clarity regarding its one-month moratorium given to traders and other market stakeholders involved in exploitative pricing.
In a post on its X page on August 31, 2024, the FCCPC responded to the feedback it has received following its recent directive to businesses to cease price gouging, price fixing, and other exploitative practices.
Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, made this announcement during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Price Fixing
At a meeting on August 29, 2024, Bello cited an example where a fruit blender known as “Ninja,” priced at $89 (approximately N140,000) in a popular supermarket in Texas, was being sold for N944,999 in a supermarket located in Victoria Island, Lagos.
He emphasized that such unwholesome practices, including price fixing, are threatening the stability of the Nigerian economy.
“Under Section 155, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if found guilty by the court.
“This is intended to deter all parties involved in such illicit activities.
“However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.
“It is in this spirit that we are giving a moratorium of one month before the Commission will start firm enforcement,” he said, assuring that the Commission would begin enforcement actions once the moratorium period ends.
At that meeting, Ifeanyi Okonkwo, the Chairman of the National Association of Nigerian Traders, FCT Chapter, noted that the charges on imported goods at the ports have also played a significant role in the surge in prices.
He urged the Commission to establish a task force and include the association in its enforcement efforts.
Meanwhile, the FCCPC boss said the government was aware of most of the problems raised by the market stakeholders.
“We have heard you, and you have genuine issues. The government has the responsibility to address these problems, but generally, let us also talk to ourselves.
“There are also gang-ups by traders to exploit consumers,” he added.
FCCPC Provides Further Clarity
In the Commission’s statement on Saturday, it acknowledged the concerns regarding the feasibility of the directive, given the current economic challenges, including the removal of fuel subsidies and fluctuations in the foreign exchange market.
The Commission stressed that “The directive issued by the FCCPC is not an attempt at price control or a mandate to crash prices arbitrarily.”
It stated that the focus is on preventing businesses from engaging in exploitative conduct such as price gouging, price fixing, the creation of barriers to entry, and all other anticompetitive and exploitative behaviors prohibited under the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The FCCPC acknowledged the complexities of the current macroeconomic environment, adding that it is actively working with stakeholders, particularly businesses and consumer groups, including political leaders, to promote fair competition and consumer protection while addressing the broader economic challenges.
The statement further reads, “These practices distort the market and harm consumers, and our commitment is to uphold a marketplace rooted in fairness and accountability by enforcing the provisions of the FCCPA.
“We encourage businesses to comply with the law and consumers to report any instances of exploitative practices.
“We look forward to your continued support and understanding.”
The FCCPC is a Federal Government regulatory agency statutorily empowered to provide speedy redress to consumer complaints, among other functions.
