No intention to regulate prices – FCCPC
The Federal Competition and Consumer Protection Commission (FCCPC) has refuted claims that it intends to regulate prices within the Nigerian market. Instead, it has clarified that its recent measures are designed solely to address exploitative practices and promote a competitive market environment.
On Tuesday, Ondaje Ijagwu, Director of Special Duties and Strategic Communication at the FCCPC, issued a statement responding to concerns from the Organised Private Sector and other stakeholders. These concerns were triggered by the commission’s recent directive to businesses to stop practices such as price gouging and price fixing.
The FCCPC emphasized that its mandate does not include price control but focuses on ensuring market fairness. The commission reiterated that market prices are determined by supply and demand dynamics and asserted that it has no plans to intervene in price setting. Any assertions suggesting otherwise, according to the FCCPC, are unfounded.
While acknowledging the impact of external factors like foreign exchange fluctuations and the removal of fuel subsidies on pricing, the FCCPC stressed that these factors do not justify unfair practices that exploit consumers.
The statement highlighted a case from the cement industry to illustrate the need for regulatory action. Abdul Samad Rabiu, Chairman of BUA Cement, reported that despite his company’s effort to maintain a fair price of N3,500 per bag, dealers were inflating prices to between N7,000 and N8,000 per bag. This scenario, the FCCPC noted, exemplifies the kind of exploitative behavior the commission aims to address.
The FCCPC reassured the business community that its goal is not to hinder private enterprise but to safeguard consumers from detrimental practices. The commission’s role is to ensure the market operates with fairness, transparency, and accountability.
To allow businesses time to adapt, the FCCPC has introduced a one-month moratorium before enforcement of the new directives begins. This period is intended to help businesses adjust their practices and ensure compliance with consumer protection and fair competition laws.
The FCCPC remains committed to monitoring the market and enforcing the Federal Competition and Consumer Protection Act of 2018, promising continued vigilance in promoting fair competition and consumer protection.
