Traders frustrating economic stability with exploitative pricing — FCCPC

…Issues one-month moratorium for traders to desist from act

Traders fixing prices to exploit consumers have been identified as agents frustrating the economic stability of Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has stated.

In June 2024, food inflation, which accounts for the bulk of Nigeria’s inflation basket, surged to a record high of 40.87 percent. However, data from the National Bureau of Statistics (NBS) revealed that Nigeria’s year-on- year headline inflation rate slowed in July 2024, for the first time in 19 months.

Speaking during a one-day stakeholders engagement on exploitative pricing held in Abuja, the FCCPC CEO, Mr Tunji Bello accused traders of gang up to exploit consumers through unreasonable pricing of goods and services in the country.

This is as the agency issued a one-month moratorium to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods or face the consequences noting that enforcement will begin after the moratorium.

The Agency also received feedback from stakeholders present at the event who attributed the high cost of transportation, insecurity, multiple taxation among others as reasons for the continuous increase in prices of goods and services.

The Chairman, National Association of Nigerian Traders, Federal Capital Territory, 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 taskforce and involve the association in its enforcement.

Mr Emmanuel Odugwu from Kugbo Spare Parts market, lamented that the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000 but now costs over N1 million to transport same.

Speaking, Tunji said that the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and the unwholesome practice of market associations.

Bello gave a description of 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.

Bello wondered 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 was threatening the stability of the economy.

According to Bello, “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.”

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 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,” he said.