The Nigerian government has given traders a one-month ultimatum to reduce the prices of goods. Discover the reasons behind this directive and its impact.
Traders and market participants engaging in exploitative pricing practices have been granted a one-month grace period by the Federal Competition and Consumer Protection Commission (FCCPC) to reduce prices of commodities. The FCCPC calls for compliance during this window.
Mr. Tunji Bello, the recently appointed Executive Vice Chairman of FCCPC, stated during a stakeholder meeting in Abuja on Thursday that enforcement actions will be initiated by the commission after the moratorium period expires with regard to exploitative pricing.
Bello pointed out the alarming tendency of irrational escalation in prices for consumer goods and services, along with worrying conduct observed within market associations.
During his talk, he cited Ninja as an illustration of a fruit blender brand. He disclosed that the popular Texas supermarket was retailing it for $89 – approximately ₦140,000 in Nigerian currency. However, at a Lagos supermarket across continents and time zones away from its origin country and store location – said product had been marked up incredibly high to ₦944,999.
Bello cautioned that the increase in price and practices like fixing prices could jeopardize economic stability, as he questioned the reasoning behind such a significant hike.
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Bello highlighted that Section 155 could result in severe consequences such as imprisonment and substantial fines for both individuals and corporations found guilty. Nonetheless, he emphasized their present approach is not focused on punishment but instead encourages all parties to embrace a sense of patriotism and cooperation.
After September, enforcement actions are scheduled to commence as the government intends to vigilantly monitor compliance within the market – this was announced by Bello.
He recognized that the government was cognizant of the difficulties confronted by market participants, but he encouraged them to refrain from unjust tactics.
Bello acknowledged the valid concerns raised and stated that though the government is mindful of them, it’s crucial to tackle consumer exploitation as well.
Multiple representatives from market associations were present during the meeting and expressed their concerns regarding the ongoing price hike. They pointed out that factors like soaring transportation expenses, insecurity issues, and excessive taxation have greatly contributed to this phenomenon.
The high import tariffs at ports were identified by Ifeanyi Okonkwo, the chairman of the FCT Chapter for the National Association of Nigerian Traders as a major contributor to rising prices. He recommended that FCCPC form a team comprising members from their organization to ensure enforceable regulations and urged them accordingly.
Emmanuel Odugwu, from the Kugbo Spare Parts market, pointed out that transportation expenses for a full trailer of goods traveling between Lagos to Abuja had increased by more than double. Ms. Kemi Ashiri – Flour Mills Liaison Manager – advocated for regulatory fine unification as it would help promote business growth; other stakeholders shared their views on this matter too.
The rise in the cost of goods was attributed by Ikenna Ubaka, a representative from the supermarket industry. He identified steep bank interest rates, rent increases and supply chain price hikes as contributing to this trend. Solomon Ukeme, who represents Master Bakers Association also pointed out that high costs for essential baking ingredients represent a significant factor leading to increased bread prices.
