Charles Daisi
The Federal Competition and Consumer Protection Commission (FCCPC) has announced a one-month moratorium for traders and market forces to reduce the prices of consumer goods, during which it will closely monitor compliance with consumer protection regulations.
The Commission also warned that after this period, it will initiate strict enforcement actions against individuals and businesses found guilty of exploiting consumers for undue profit, with penalties including substantial fines and possible imprisonment.
Tunji Bello, Executive Vice Chairman/CEO of the Commission stated this during a one-day stakeholders’ engagement on exploitative pricing held in Abuja.
Bello said that the FCCPC’s commitment comes as part of its broader effort to create a more conducive business environment for all sectors.
“The law empowers the commission to impose heavy fines for breaches and also prosecute offenders which could lead to jail terms.
“For instance, Section 107 (4a.) of FCCPA clearly states that, Where the undertaking is a natural person, is liable on conviction to imprisonment for a term not exceeding three years or to payment of a fine not exceeding N10,000,000.00 (N10m) or to both the fine and imprisonment.
“Section 107 (4b.) also states that, Where the undertaking is a body corporate, it is liable on conviction to a fine not exceeding 10% of its turnover in the preceding business year.
“But in the spirit of democracy, we are first exploring the option of dialogue. It is also in this spirit that we are giving a moratorium of one month (that is, September) before the Commission will start firm enforcement. Let us work together to create a marketplace that is not only competitive but also fair and just,” Bello said
The Commission has also issued a stern warning against price gouging, emphasizing that such practices are not only unethical but also illegal under the Federal Competition and Consumer Protection Act (FCCPA).
Bello reminded stakeholders that while the commission has the power to impose heavy fines and prosecute offenders, leading to possible jail terms, it is first exploring the option of dialogue to encourage stakeholders to adjust their prices downward to a reasonable level.
The Vice Chairman revealed that a fruit blender called Ninja was displayed on the shelf of a supermarket in Texas, USA at $89 (roughly N140,000), and the same product was displayed in a popular supermarket at Victoria Island, Lagos for N944,999 and wondered the basis for the arbitrary hike in the price of the blender.
The Commission also addressed the issue of public transportation, questioning the justification for bus drivers doubling fares due to slightly higher petrol costs and warned that such practices could trigger a spiral of arbitrary price hikes across various sectors, ultimately leading to an unbearable cost of living for everyone.
He said the engagement, held amidst rising concerns over the cost of living, highlighted the Commission’s commitment to protecting consumers from unfair market practices.
According to him, the FCCPC’s belief that dialogue and collaboration are vital tools in fostering a fair marketplace.
The FCCPC boss added that the engagement aimed to bring together market leaders and key players in the supply and distribution chains to chart a path forward that balances business profitability with consumer protection as a constructive approach could lead to the establishment of a framework for reasonable pricing that benefits all stakeholders, particularly the consumers, who are the backbone of the Nigerian economy.
He therefore called on all market stakeholders to foster a spirit of patriotism and cooperation in addressing pressing market challenges.
The commission also pledged to tackle key issues raised by market participants, including multiple taxation, soaring transportation costs, high import duties, and escalating electricity expenses.
On his part, Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders (NANTS), FCT Chapter, noted that the charges on imported goods at the ports have also played a significant role in the surge in prices.
Coupled with the high cost of transporting good to the point of sale, multiple taxation from security agencies and local governments agents, high cost of rent.
He said that the association is ready to partner with the government to reduce the prices of goods and advised the council to place monitoring reams in the markets to effectively checkmate the activities of traders.
