THE Federal Competition and Consumer Protection Commission (FCCPC) has given traders and other market participants engaged in exploitative pricing a one-month deadline to lower the cost of goods.
In a statement released yesterday, the FCCPC’s Executive Vice-Chairman, Tunji Bello, announced the directive during a one-day stakeholders’ meeting on exploitative pricing in Abuja.
Bello stated that the commission would begin enforcement actions after the notice period ends.
He explained that the meeting was convened to address the rising issue of unreasonable pricing of consumer goods and services, as well as the harmful practices of market associations.
Bello remarked, “The pressing national issue at hand is the increasing trend of unreasonable pricing of consumer goods and services across the country, along with the harmful practices of market associations involved in price fixing.
“As a responsive organisation, we have conducted extensive and discreet market surveys across the country in recent weeks. Our findings are deeply concerning, to say the least. Therefore, our gathering here today highlights the seriousness of the situation and the urgent need to collaborate in curbing this harmful trend.
“As a statutory body responsible for protecting consumer rights, we cannot allow this unhealthy trend to persist. While we acknowledge that an unfavourable exchange rate has raised the cost of production in local currency, the profit margins on goods and services are unreasonable or, in some cases, excessive.
“We have observed, for example, that the profit margins on imported goods are often disproportionately high; and for locally produced goods, excessively inflated. This is an unsustainable situation, particularly in the retail sector, where we have identified patterns of price fixing by certain market associations, price gouging, and other anti-consumer practices.”
This comes as the National Bureau of Statistics (NBS) recently reported an inflation rate of 33.40 per cent, with food inflation exceeding 40 per cent.
The inflation rate had escalated since President Bola Tinubu announced the removal of fuel subsidies on May 29, 2023.
The FCCPC further warned that it would not hesitate to enforce the full extent of the law on those who fail to comply.
Bello added, “Given the current situation in Nigeria, let me be clear: Price gouging and price fixing are not only unethical but are also explicitly illegal under the FCCPA.
“As such, the FCCPC has the resolve and capacity to apply the full force of the law against those found guilty of exploiting consumers.
“However, our approach today is not punitive or confrontational… dialogue and collaboration are also crucial tools in fostering a fair marketplace.”