FG Issues One-Month Ultimatum For Traders To Slash Prices Of Goods
In a decisive move to combat exploitative pricing, the Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium for traders and market stakeholders to reduce the prices of goods. The ultimatum, announced by the newly appointed Executive Vice Chairman of the FCCPC, Tunji Bello, came during a one-day stakeholders’ engagement on exploitative pricing held in Abuja on Thursday.
Bello emphasised that the Commission would initiate enforcement actions after the one-month grace period. The meeting was convened to address the escalating trend of unreasonable pricing of consumer goods and services and the unethical practices by some market associations.
Citing a specific example, Bello highlighted the Commission’s discovery that a fruit blender branded as “Ninja,” which retails for €82.89 (₦140,000.00) in a popular Texas supermarket, was being sold for an exorbitant ₦944,999.00 in a supermarket on Victoria Island, Lagos. He questioned the justification for such a drastic price disparity, noting the adverse impact on consumers and the economy.
“Under Section 155, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if found guilty by the court,” Bello stated. “However, our approach today is not punitive. We are giving a one-month moratorium, during September, before the Commission will begin firm enforcement. We urge all stakeholders to embrace patriotism and cooperation.”
Bello also acknowledged the genuine concerns raised by market stakeholders, including issues like high transportation costs, insecurity, and multiple taxation, which contribute to the continuous rise in prices.
At the engagement, Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders (FCT Chapter), pointed to high charges on imported goods at the Ports as a significant factor in price hikes. He urged the FCCPC to establish a task force and involve the association in enforcement efforts.
Other stakeholders, such as Emmanuel Odugwu from Kugbo Spare Parts Market, noted the surge in transportation costs, which have more than doubled from ₦450,000 to over ₦1 million for transporting a trailer load of tyres from Lagos to Abuja.
Ms. Kemi Ashiri, Liaison Manager at Flour Mills, called for the harmonisation of fines imposed by regulators to ensure a conducive environment for businesses. Meanwhile, supermarket representatives like Ikenna Ubaka highlighted the impact of exorbitant bank interest rates, rent hikes, and electricity costs on their pricing structures.
Solomon Ukeme, representing the Master Bakers Association, added that the rapid increase in the cost of key ingredients such as flour, sugar, and butter has driven up the prices of confectioneries. He also pointed to multiple taxation as a primary factor behind the rising cost of bread.
The News Agency of Nigeria (NAN) reported that various market associations attended the engagement, signalling widespread interest in addressing the issue of exploitative pricing.
