FG Gives Traders One-Month Ultimatum To Reduce Prices Or Face Consequences

FG Gives Traders One-Month Ultimatum To Reduce Prices Or Face Consequences

The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month notice to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods.

A Thursday statement by the commission, said the Executive Vice-Chairman of the FCCPC, Tunji Bello, gave the order at a one-day stakeholders’ engagement on exploitative pricing in Abuja.

According to Bello, the commission will begin enforcement after the expiration of the notice.

He said the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and unwholesome practices of market associations.

Bello said: “The issue of critical national importance of the day is the growing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing.

‘’As a responsive organization, we have carried out discreet market surveys extensively across the country in the past few weeks. Our findings are quite disturbing, to put it mildly. Therefore, our gathering here today (yesterday) is to underscore the gravity of the situation and the urgency of the need to work together to check this unwholesome development.

“As a statutory body whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue. To be sure, we quite recognize that an unfavourable exchange rate has negatively impacted the cost of production in local currency. However, the margin in pricing goods and services is unreasonable or excessive in a few cases.

‘’We have observed, for instance, that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated. This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.

This is as the National Bureau of Statistics (NBS) recently pegged the inflation rate at 33.40 per cent, with the food inflation at over 40 per cent.

The high inflation rate has worsened since President Bola Tinubu on May 29, 2023, pronounced an end to fuel subsidies.

Explaining further, FCCPC also said it would not fail to invoke the full weight of the law on defaulters.

He said, “In view of the current situation in Nigeria, let me however be very unequivocal. Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA.

“As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers.

“However, our approach today is not punitive or adversarial… dialogue and collaboration are equally important tools in fostering a fair marketplace.”