The Federal Competition and Consumer Protection Commission, FCCPC, went tough on price exploitation and speculators on Thursday, giving a one-month moratorium to traders and other market stakeholders involved in such unwholesome practice to crash the prices of goods.
The Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, gave the directive during a one-day stakeholders engagement on exploitative pricing on Thursday in Abuja, stating emphatically that the commission will begin enforcement after the moratorium.
He said the meeting became necessary to address the growing trend of unreasonable pricing of consumer goods and services and the unwholesome practice of market associations.
For instance, Bello said his commission’s found 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 could not fathom any basis for the arbitrary hike in the price of the blender compared to the Texas, United States of America, maintaining that unwholesome practices like price fixing constitute a huge threat to the economy.
His words: ”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 the 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.
Some of the market stakeholders who spoke at the engagement said that the high cost of transportation, insecurity, and multiple taxation among others were reasons for the continuous increase in prices of goods and services.
The Chairman, National Association of Nigerian Traders, 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 task force and involve the association in its enforcement.
Mr. Emmanuel Odugwu from Kugbo Spare Parts market said the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000 but now, it costs over one million naira to transport the same.
The Liaison Manager, Flour Mills, Ms. Kemi Ashiri, said that fines by regulators needed to be harmonised for businesses to thrive.
Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that banks’ interest rates to them were over 30 per cent, rent increments and hikes in prices by distribution/ supply chains were reasons for the high cost of goods.
Ubaka also alleged that electricity distribution companies were charging supermarkets exorbitantly.
Mr Solomon Ukeme who represented Master Bakers Association, said that the rapid increment of major ingredients like flour, sugar, and butter contributed to the high cost of confectioneries.
He said that a bag of flour formally sold for N34,000 was now being sold for N74,000.
He said that multiple taxation was also the major cause of the high cost of bread.
Several market associations were among the major stakeholders that attended the meeting with the FCCPC.