The Federal Competition and Consumer Protection Commission (FCCPC) has given traders and market stakeholders a one-month ultimatum to reduce exploitative prices of goods.
This warning was issued during a stakeholders’ engagement on exploitative pricing held in Abuja, as announced by the FCCPC on Thursday.
Executive Vice-Chairman of the FCCPC, Tunji Bello, emphasized that the commission will begin enforcement actions once the notice period ends. The engagement aimed to address the increasing trend of unreasonable pricing of consumer goods and services, as well as the unwholesome practices of market associations.
He highlighted that recent discreet market surveys conducted by the FCCPC across the country revealed disturbing findings.
Bello acknowledged the impact of an unfavorable exchange rate on the cost of production but noted that the profit margins on goods and services are excessive, especially in the retail sector where price fixing and gouging have become prevalent.
The FCCPC also referenced data from the National Bureau of Statistics (NBS), which pegged Nigeria’s inflation rate at 33.40%, with food inflation exceeding 40%. The rising inflation has been exacerbated by the end of fuel subsidies announced by President Bola Tinubu on May 29, 2023.
The FCCPC warned that it would not hesitate to apply the full weight of the law on defaulters, stressing that price gouging and price fixing are illegal under the FCCPA. However, the commission’s current approach is focused on dialogue and collaboration to ensure a fair marketplace.
The FCCPC urged traders and market associations to adjust their pricing practices before enforcement actions commence.