The Federal Competition and Consumer Protection Commission (FCCPC) has granted a one-month moratorium to traders and market stakeholders involved in exploitative pricing, urging them to reduce the prices of goods.
The newly appointed Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, announced this during a one-day stakeholders’ engagement on exploitative pricing held on Thursday in Abuja.
Bello stated that the commission would begin strict enforcement after the moratorium period ends.
The purpose of the meeting was to address the increasing trend of unreasonable pricing of consumer goods and services, as well as the unethical practices of market associations.
Citing an example, Bello pointed out that a fruit blender known as “Ninja,” which sells for $89 (approximately N140,000) at a popular supermarket in Texas, was being sold for N944,999 in a supermarket on Victoria Island, Lagos.
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He questioned the justification for such an arbitrary price increase, which far exceeds the price in the United States.
Bello warned that these exploitative practices, including price fixing, threaten the stability of the Nigerian economy.
He emphasized that under Section 155, violators—whether individuals or corporate entities—could face severe penalties, including hefty fines and imprisonment if found guilty by the court.
“Our approach today is not punitive,” Bello said. “We are giving a one-month moratorium in the spirit of patriotism and cooperation before the commission will begin strict enforcement.”
He acknowledged the challenges raised by market stakeholders, such as high transportation costs, insecurity, and multiple taxation, as reasons for the continuous increase in prices.
However, he urged stakeholders to reflect on their practices, noting that there are instances of collusion among traders to exploit consumers.
The Chairman of the National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, highlighted that charges on imported goods at the ports also contribute to price hikes.
He appealed to the commission to establish a task force and involve the association in its enforcement efforts.
Other stakeholders also shared their concerns. Mr. Emmanuel Odugwu from Kugbo Spare Parts Market noted that the cost of transporting a trailer load of tires from Lagos to Abuja has more than doubled, from N450,000 to over N1 million.
Ms. Kemi Ashiri, the Liaison Manager for Flour Mills, called for the harmonization of fines by regulators to help businesses thrive.
Representatives of supermarket owners, including Ikenna Ubaka, pointed out that high-interest rates from banks, rent increments, and price hikes by supply chains are significant factors contributing to the high cost of goods.
They also alleged that electricity distribution companies are charging supermarkets exorbitantly.
Mr. Solomon Ukeme, representing the Master Bakers Association, highlighted the rapid increase in the prices of major ingredients like flour, sugar, and butter as a major cause of the high cost of bread and other confectioneries.
He mentioned that a bag of flour, which previously sold for N34,000, is now priced at N74,000. Ukeme also cited multiple taxation as a major factor driving up the cost of bread.
The Saving Point Media reports that various market associations were present at the engagement.
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