The Federal government, through the Federal Competition and Consumer Protection Commission (FCCPC), has granted a one-month moratorium for traders and market stakeholders to adjust prices to fair levels.
This decision was announced by Mr. Tunji Bello, the new Executive Vice Chairman of the FCCPC, during a one-day stakeholders’ engagement on exploitative pricing in Abuja on Thursday.
Bello explained that the FCCPC’s action is in response to growing concerns about the high cost of basic commodities, which have been straining many Nigerian households.
The News Agency of Nigeria (NAN) reports that various market associations participated in the engagement.
Bello highlighted the meeting’s purpose: to address the increasing trend of unreasonable pricing and unethical practices by market associations.
He cited a specific example from the Commission’s findings: a fruit blender, the Ninja, priced at $89 (approximately N140,000) in a Texas supermarket, was being sold for N944,999 in a Lagos supermarket.
Bello questioned the justification for such price disparities and noted that practices like price fixing are threatening economic stability.
“Under Section 155, violators, whether individuals or corporate entities, face severe penalties, including substantial fines and imprisonment if found guilty by the court,” Bello stated.
He added, “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. In this spirit, we are providing a one-month moratorium (September) before the Commission begins strict enforcement.”
Bello acknowledged the issues raised by market stakeholders and emphasized that while the government recognizes the genuine concerns, accountability is also necessary.
He mentioned that some traders were colluding to exploit consumers.
Market stakeholders cited factors like high transportation costs, insecurity, and multiple taxation as reasons for rising prices.
Mr. Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders, FCT Chapter, pointed out that port charges on imported goods contribute to price increases and urged the Commission to form a task force involving the association for enforcement.
Mr. Emmanuel Odugwu from Kugbo Spare Parts Market noted that the cost of transporting a trailer load of tyres from Lagos to Abuja had risen from N450,000 to over N1 million.
Ms. Kemi Ashiri, Liaison Manager for Flour Mills, called for harmonized regulatory fines to support business growth.
Ikenna Ubaka, representing supermarket owners, attributed higher costs to excessive bank interest rates (over 30%), rent increases, and distribution/supply chain price hikes. He also mentioned that exorbitant charges by electricity distribution companies were impacting supermarkets.
Mr. Solomon Ukeme, representing the Master Bakers Association, highlighted rising ingredient costs—flour, sugar, and butter—as contributing to higher prices for baked goods. He reported that a bag of flour had surged from N34,000 to N74,000 and noted that multiple taxation was a significant factor in the high cost of bread.
