The Federal Competition and Consumer Protection Commission (FCCPC) has criticized dealers for inflating the price of BUA Cement to N7,000 and N8,000 per bag, compared to the company’s recommended price of N3,500.
The FCCPC disclosed this in a statement on September 3, 2024, in response to remarks from the Organized Private Sector regarding retail sector oversight.
The FCCPC recently clarified its one-month moratorium given to traders and other market stakeholders involved in exploitative pricing.
In an FCCPC post on its X page on August 31, 2024, the Commission responded to the “feedback” it 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 the announcement during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Price Fixing
At a recent meeting, Bello cited an example of a fruit blender known as Ninja, priced at $89 (N140,000) in a popular supermarket in Texas, being sold for N944,999 in a supermarket located in Victoria Island, Lagos.
He stated that such unwholesome practices, including price fixing, were 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.
In the Commission’s statement on August 31, 2024, Nairametrics reported that the FCCPC acknowledged 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, “The directive issued by the FCCPC is not an attempt at price control or a mandate to crash prices arbitrarily.”
FCCPC Replies Organized Private Sector
On Tuesday, the FCCPC further clarified its stance by formally addressing feedback from the Organized Private Sector and other interested parties regarding its recent directive.
It insisted that its mandate is to safeguard consumers from unfair and deceptive practices and to ensure robust competition across all sectors, not price control as alleged in certain quarters.
“Our recent directives are not about controlling prices but are focused on curbing exploitative practices and anti-competitive behaviors that distort the marketplace and harm consumers,” the statement partly reads.
Highlighting its decision, the FCCPC referenced a local discovery where certain dealers allegedly inflated the price of BUA Cement, describing it as exploitative.
“Discoveries made during our market surveillance and a recent disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, underscore the critical need for our oversight. Mr. Rabiu revealed that despite BUA Cement’s effort to sell cement at a fair price of N3,500 per bag, their plan was undermined by dealers who inflated prices to as much as N7,000 to N8,000 per bag.
“This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing. Such practices make it difficult for ethical businesses to thrive,” the statement added.
The FCCPC stated that while promoting competition is essential for economic health, as evidenced in sectors like telecommunications, it is equally important to enforce laws against practices that undermine fair competition.
The FCCPC emphasized that it does not seek to suppress private enterprise; its role is to ensure that the market operates on principles of fairness, transparency, and accountability.
“When businesses, as illustrated by the cement sector case, engage in practices that harm consumers, the FCCPC will take decisive action,” the FCCPC assured, adding, “We have granted a one-month moratorium before enforcement begins, providing businesses with the necessary time to adjust their practices and ensure full compliance with laws aimed at protecting consumers and fostering fair competition.”
The FCCPC is a Federal Government regulatory agency statutorily empowered to provide speedy redress to consumer complaints, among other functions.
