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Chief Executive Officer, CPPE, Dr. Muda Yusuf
The Centre for the Promotion of Private Enterprise has warned the Federal Competition and Consumer Protection Commission against what it describes as the “intimidation” of retailers across Nigeria.
In a statement released on Sunday by the Director/CEO of CPPE, Dr. Muda Yusuf, the organisation expressed concerns over the FCCPC’s recent actions, which it believes are veering dangerously close to price control rather than focusing on its primary mandate of protecting consumers rights.
Yusuf argued that the FCCPC appears to be transforming into a “price control agency” instead of upholding its duty as a consumer protection body.
“The disproportionate focus of the commission on the retail segment of the economy and pricing issues underscores this assertion,” he said.
He emphasised that consumer protection should not involve direct price control at the retail level, and the recent threats to market leaders, traders, and supermarket owners by the FCCPC are misplaced.
According to the CPPE, the retail sector, characterised by millions of players, is one of the least vulnerable to price gouging.
“The truth is that the retail segment of the economy is the least vulnerable to price gouging or consumer exploitation on a sustainable basis, contrary to the thinking of the commission,” Yusuf stated.
He further explained that the multitude of players in the retail sector ensures a competitive environment where exploitation is difficult to sustain.
The CPPE expressed concern that the FCCPC is “fighting the symptoms rather than dealing with the causes of the current inflationary pressure in the economy.”
Yusuf pointed out that managing inflation is the responsibility of fiscal and monetary authorities, not the FCCPC.
“The fiscal and monetary authorities are statutorily responsible for macroeconomic policy issues and are better placed to deal with the challenge of high prices,” he added.
Yusuf highlighted that the best way to protect consumers from exploitation is to promote competition across sectors, as seen in the telecoms industry.
“The emphasis should not be on pricing but on deepening the culture and practice of competition and a level playing field for all investors,” he noted.
He warned that the FCCPC approach could lead to “market suppression and private enterprise repression,” which would harm investor confidence in the Nigerian economy.
The CPPE also criticised the FCCPC proposal to enforce price regulation by traversing markets across the country.
Yusuf described this approach as “unsustainable” and urged the commission to focus on the root causes of inflation, such as high energy costs, logistics challenges, and the impact of exchange rate depreciation.
He stressed that “the dynamics of pricing and prices in an economy are much more complex and fundamental” and require a comprehensive understanding beyond superficial comparisons.
In his statement, Yusuf called on the FCCPC to collaborate with other government agencies to address the fundamental drivers of inflation rather than resorting to intimidating retailers.
He also pointed out sectors where consumer rights violations are more prevalent, such as aviation, health, energy, and financial services, which he believes should command more attention from the commission.
“The commission should work in collaboration with the other agencies of government to tackle the fundamental causes of inflation in the economy. The focus should be on causative factors driving prices, not the symptoms,” he said.
