FG Gives Traders One-Month Ultimatum to Reduce Prices

The Federal Government has issued a one-month ultimatum to traders, demanding a reduction in prices to alleviate the burden on consumers.

Traders and market stakeholders engaging in exploitative pricing have been given a one-month notice by the FCCPC to lower their prices for goods.

During a one-day stakeholders’ engagement on exploitative pricing in Abuja, Tunji Bello – the Executive Vice-Chairman of FCCPC instructed as per an official statement released by the commission last Thursday.

Bello stated that enforcement by the commission will commence upon expiry of the notice.

According to him, the purpose of the meeting was to discuss the increasing prevalence of exorbitant pricing for consumer products and services as well as unethical conduct from market associations.

Bello stated that the prevailing concern of national significance is the increasing pattern of exorbitant pricing for consumer products and services nationwide, as well as market associations’ unsavory conduct involving price manipulation.

As a proactive organization, we have extensively conducted discreet market surveys nationwide in recent weeks. Our discoveries are concerning at best. As such, our meeting yesterday aimed to emphasize the gravity of the matter and the essential collaboration required to curb this unhealthy trend.

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As a statutory organization tasked with safeguarding consumer rights, we cannot condone the continuation of this detrimental pattern. We acknowledge that an unfavorable exchange rate has adversely affected production costs in local currency; notwithstanding, some instances exhibit pricing margins for goods and services which are unreasonable or excessive.

We have noticed that the markup on imported items is often alarmingly uneven and local goods are marked up excessively. This issue, especially prevalent in retail, has been attributed to certain market associations engaging in price-fixing conspiracy, gouging customers with exorbitant prices and employing other unfair business tactics detrimental to consumers.

Recently, the National Bureau of Statistics (NBS) set the inflation rate at 33.40 percent, while food inflation surpassed 40 percent.

Since President Bola Tinubu pronounced an end to fuel subsidies on May 29, 2023, the high inflation rate has deteriorated.

In addition, the FCCPC emphasized that it would not hesitate to enforce strict legal consequences on those who fail to comply.

“In light of the present circumstances in Nigeria,” he stated, “I must be extremely clear. Not only is price gouging and price fixing unethical, but it is also unquestionably against FCCPA laws.”

The FCCPC possesses both the determination and ability to exercise legal authority against individuals or entities responsible for exploiting consumers.

Nevertheless, our present strategy does not entail punishment or conflict… rather, promoting an equitable marketplace necessitates both discourse and cooperation.