FG sets one-month deadline to tackle soaring commodity prices

Business a.m.

The Federal Competition and Consumer Protection Commission (FCCPC)  has granted a one-month reprieve to traders and market players engaged in exploitative pricing practices, demanding that they immediately reduce the prices of goods to fairer levels

Tunji Bello, the executive vice chairman of the FCCPC, issued a staunch warning to traders and market players engaged in exploitative pricing practices during a stakeholders’ engagement held recently in Abuja.

Bello stated that the commission is offering a one-month moratorium for such parties to rectify their pricing, after which the FCCPC will initiate strict enforcement measures to eradicate exploitative pricing in the Nigerian markets. 

The FCCPC EVC declared that the event was convened with the specific objective of addressing the rampant and worrisome trend of unreasonable and exploitative pricing of consumer goods and services.

Bello also made a startling revelation about the vast disparity in pricing practices between the Nigerian and American markets. He shared the commission’s discovery that a popular fruit blender known as Ninja, which retails for $89 (about N140,000.00) in a supermarket in Texas, USA, was being sold for an exorbitant N944,999.00 in a supermarket in Victoria Island, Lagos, Nigeria. Bello expressed dismay over the arbitrary and unjustifiable price hike in Lagos, questioning the basis for such an inflated price compared to the US market.

”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, ” he stated.

During the engagement, Bello recognised the market stakeholders’ concerns, assuring them that the government was mindful of the issues they raised. He implored the market stakeholders to reflect on their own actions, acknowledging that the market players also bear a responsibility in fostering fair and equitable pricing practices. 

Meanwhile, market stakeholders who shared their insights and perspectives on the persistent increase in prices of goods and services, identified high transportation costs, persistent security challenges, and multiple taxation among major contributing factors.

The market stakeholders argued that these issues have contributed significantly to the upward trend in prices, placing significant financial strain on businesses and consumers alike. 

Ifeanyi Okonkwo,chairman of the National Association of Nigerian Traders (NANT), FCT Chapter, added another layer to the discussion by highlighting the issue of excessive charges on imported goods at the Ports, which have also contributed to the upward trend in prices of goods and services. 

Okonkwo urged the commission to address this issue, proposing the establishment of a task force, with the involvement of the NANT, to ensure the effective enforcement of fair pricing practices.

Emmanuel Odugwu from Kugbo Spare Parts market corroborated the impact of rising transportation costs, stating that the cost of transporting a trailer load of tyres from Lagos to Abuja had increased more than two-fold, from N450,000 to over N1,000,000.

Also speaking, Kemi Ashiri, the liaison manager for Flour Mills, highlighted another challenge facing businesses, being  the proliferation of fines from various regulatory bodies, which can be burdensome and create a hostile business environment.

The issue of high cost of confectioneries was brought to the fore by Solomon Ukeme, a representative of the Master Bakers Association, who cited the significant increases in the prices of key ingredients such as flour, sugar, and butter. 

Ukeme noted that the price of a single bag of flour had more than doubled, from N34,000 to N74,000. In addition, he noted that the problem of multiple taxation was contributing to the cost of bread production and distribution, resulting in higher prices for consumers.