In a bold move to combat rising consumer prices, the Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has issued a one-month ultimatum to traders and market stakeholders. The directive, announced by Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, came during a crucial stakeholders’ meeting in Abuja focused on exploitative pricing practices.
This initiative targets a wide range of market sectors and is a response to the public outcry over the steep increase in prices of basic goods and services. Notably, the commission highlighted an egregious example of price inflation where a Ninja fruit blender was sold in a Lagos supermarket at a price three times higher than in Texas, USA.
“The disparity in pricing at different locations for the same product is unacceptable and indicative of the unjustifiable price hikes that consumers in Nigeria are facing,” said Bello. The commission has threatened to implement severe penalties for non-compliance, including fines and imprisonment as outlined under Section 155.
The decision to enforce price reductions follows increasing concerns that inflated costs are threatening the stability of Nigeria’s economy. The FCCPC’s approach aims to encourage fair pricing practices without immediately resorting to punitive measures. “We’re invoking a spirit of patriotism and cooperation from our market leaders,” Bello stated, emphasizing the need for a collective effort to stabilize prices.
Various stakeholders at the meeting voiced concerns that the high costs are driven by several factors, including elevated transportation fees, security challenges, and excessive taxation. Representatives from different market sectors, such as the National Association of Nigerian Traders, argued that charges on imported goods and other operational costs significantly contribute to retail pricing.
The Chairman of the National Association of Nigerian Traders, FCT Chapter, Mr. Ifeanyi Okonkwo, highlighted the impact of port charges on imported goods. “These costs cascade through the supply chain, culminating in higher retail prices,” Okonkwo explained. He also urged the Commission to include the association in its enforcement task force to ensure transparency and fairness.
As the deadline approaches, the FCCPC’s initiative is being closely monitored by consumers and businesses alike, with the hope that it will lead to more reasonable pricing and help alleviate the economic burden on Nigerian families.
The warnings come at a time when the Nigerian Inflation Rate is surging, particularly in food costs. In July 2024, food prices rose by 39.53 percent compared to the previous year.
