In an effort to combat the rising trend of exploitative pricing in Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium to traders and market stakeholders. The commission is urging them to reduce the prices of goods and services, warning that strict enforcement actions will follow once the moratorium expires.
Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, made this announcement during a one-day stakeholders’ engagement on exploitative pricing held in Abuja. The meeting brought together various market players, including traders, to address the growing concern over unreasonable price hikes and unethical practices in the Nigerian market.
During the engagement, Bello expressed concern over the widespread inflation of prices, particularly citing an example that illustrates the severity of the issue. He noted that a fruit blender known as Ninja, which is priced at $89 (approximately N140,000) in a supermarket in Texas, United States, was being sold for an exorbitant N944,999 in a supermarket on Victoria Island, Lagos.
Bello questioned the basis for such a dramatic price increase, especially considering the vast difference between the price in the United States and Nigeria. “What could possibly justify such a huge markup?” Bello asked rhetorically. He emphasized that such practices are not only exploitative but also threaten the stability of the Nigerian economy.
The FCCPC boss reminded market stakeholders that the Commission has the legal authority to take action against individuals or corporate entities involved in price gouging and other unethical practices. He cited Section 155 of the FCCPC Act, which prescribes severe penalties, including substantial fines and imprisonment, for those found guilty of such violations.
“Under Section 155, violators—whether individuals or corporate entities—face severe penalties if found guilty by the court. This includes fines and imprisonment,” Bello stated. He clarified that while the Commission is ready to enforce these penalties, the current approach is not punitive. Instead, the FCCPC is giving traders a chance to adjust their pricing practices voluntarily before resorting to enforcement.
“Our approach today is not to punish but to encourage voluntary compliance. Therefore, we are granting a one-month moratorium during which we expect traders and market associations to lower their prices to reasonable levels,” Bello said.
In response to the FCCPC’s call, traders at the meeting pointed out several challenges they face in reducing the prices of goods. Ifeanyi Okonkwo, the Chairman of the National Association of Nigerian Traders, FCT Chapter, highlighted the high charges on imported goods at Nigerian ports as a significant factor contributing to the surge in prices.
“Import duties and other charges at the ports are a big burden on traders, which ultimately leads to higher prices for consumers,” Okonkwo explained. He urged the FCCPC to consider these challenges when enforcing price regulations and suggested the establishment of a task force that includes representatives from the traders’ association to oversee the enforcement process.
Other market stakeholders also voiced their concerns, citing various factors that contribute to the high cost of goods and services. These include the escalating costs of transportation due to fuel prices, the impact of insecurity on supply chains, and the burden of multiple taxation by different levels of government.
In his remarks, Bello acknowledged the concerns raised by the traders and assured them that the government is aware of these issues. However, he urged the traders to also consider the welfare of consumers and avoid forming cartels that exploit the public.
“We understand the challenges you face, and the government is committed to addressing these problems. But at the same time, we must also talk about the need for traders to avoid exploiting consumers,” Bello said. He pointed out that some traders and market associations are engaging in unethical practices, such as price-fixing, which exacerbates the problem of exploitative pricing.
Bello stressed the importance of patriotism and cooperation among all stakeholders in ensuring that consumer goods and services are priced fairly. He called on traders to work with the government and the FCCPC to create a more stable and fair market environment.
As the one-month moratorium begins, the FCCPC has made it clear that it will not hesitate to take action against those who continue to engage in exploitative pricing after the period ends. Bello warned that the Commission is prepared to carry out rigorous enforcement to protect consumers and maintain economic stability.
“We want to give everyone the opportunity to adjust their prices voluntarily. But let me be clear, once the moratorium ends, we will begin strict enforcement actions against those who continue to engage in exploitative pricing,” Bello cautioned.
