Nigerians may heave a sigh of relief in prices of commodities in markets in the next one month of the order of the Federal Government comes true. This is as the Federal Competition and Consumer Protection Commission has ordered that there be immediate downward review of cost of goods in the Nigerian market within the next 1 month. This ultimatum was given by the newly appointed Executive Vice Chairman of the FCCPC, Mr Tunji Bello at a one-day stakeholders engagement on exploitative pricing on Thursday, 29th August 2024 in Abuja.
Exec. Vice Chairman of Federal Competition and Consumer Protection Commission
Mr. Tunji Bello affirmed that the federal agency, Federal Competition and Consumer Protection Commission will begin strict enforcement of its decision against exploitative pricing after the moratorium, TheMediaGood Newspaper can report. He said that the stakeholders meeting was to address the growing trend of unreasonable pricing of consumer goods and services and the unwholesome practice of market associations.
Bello described the commission’s finding that a fruit blender known as Ninja was being sold at a popular supermarket in Texas for 89 dollars (N140,000.00) but the same product was displayed for N944,999.00 in a supermarket in Victoria Island, Lagos. He wondered about the basis for the arbitrary hike in the price of the blender compared to the Texas, United States of America.
He said the unwholesome practices including price fixing were threatening the stability of 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. 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 (September) before the commission will start firm enforcement,’ he said.
Bello said the government was aware of most of the problems raised by the market stakeholders. ‘We have heard and you have genuine issues and the government has the responsibility to address the problems but generally, let us talk to ourselves too. There are also gang-ups to exploit consumers by traders.’
Some of the market stakeholders who spoke at the engagement said that the high cost of transportation, insecurity, and multiple taxation among others were reasons for the continuous increase in prices of goods and services.The Chairman, National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, said that charges on imported goods at the Ports also contributed to the hike in prices.Okonkwo appealed to the Commission to set up a task force and involve the association in its enforcement.
Mr. Emmanuel Odugwu from Kugbo Spare Parts market said the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000 but now, it costs over one million nairas to transport the same.
The Liaison Manager, Flour Mills, Ms. Kemi Ashiri, said that fines by regulators needed to be harmonised for businesses to thrive.Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that banks’ interest rates to them were over 30 per cent, rent increments and hikes in prices by distribution/ supply chains were reasons for the high cost of goods.Ubaka also alleged that electricity distribution companies were charging supermarkets exorbitantly.
Mr. Solomon Ukeme who represented Master Bakers Association, said that the rapid increment of major ingredients like flour, sugar, and butter contributed to the high cost of confectioneries. He said that a bag of flour formally sold for N34,000 was now being sold for N74,000. He said that multiple taxation was also the major cause of the high cost of bread.
The News Agency of Nigeria reports that various market associations also attended the engagement.