3 months ago
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The Federal Competition and Consumer Protection Commission has issued a stern warning to businesses engaging in exploitative pricing practices, threatening severe penalties, including prosecution for those found guilty.
This announcement was made by the FCCPC Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello, during a stakeholders’ meeting held in Abuja on Thursday.
Addressing the gathering, Bello expressed concern over the increasing trend of unreasonable pricing of consumer goods and services across Nigeria, attributing it to both price fixing by market associations and price gouging by individual sellers.
“Our findings are quite disturbing, to put it mildly,” Bello stated.
He emphasised the urgency of addressing this issue stating, “As a statutory body whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue.”
The FCCPC recent market surveys, conducted discreetly across several cities including Abuja, Lagos, Kano, and Port Harcourt, revealed alarming instances of price manipulation.
In one example, Bello highlighted a significant discrepancy in the price of a fruit blender sold at a supermarket in Lagos compared to its price in the United States.
“A fruit blender called Ninja is displayed on the shelf at $89 (roughly N140,000) in the US. Meanwhile, the same product was displayed at a popular supermarket at Victoria Island in Lagos for N944,999 on the same day and at the same hour. This represents more than 500 percent inflation of the cost,” Bello explained.
The FCCPC chief also pointed out the unethical practices observed in local markets, where cartels inflate prices by controlling the supply chain.
“Rather than allow free trade, the market cartel then inserts themselves between the produce farmers and the retailers, buying in large quantities from the producer at a cheap rate and, in turn, selling to market retailers at a much higher price,” Bello said.
He described this practice as “no longer acceptable,” affirming that the FCCPC would crack down on those involved in such profiteering schemes.
Bello underscored the illegality of these practices under the Federal Competition and Consumer Protection Act.
“Price gouging and price fixing are not only unethical but patently illegal under the FCCPA,” he declared.
“The FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers for undue profit,” he added.
The FCCPA provides for severe penalties for violators, including fines and imprisonment.
According to Bello, Section 107 of the Act specifies that a natural person found guilty could face imprisonment for up to three years or a fine of up to N10m, or both. Corporate entities could be fined up to 10 per cent of their turnover from the previous business year.
Despite these strong measures, Bello assured stakeholders that the FCCPC’s current approach was not intended to be punitive.
“In the spirit of democracy, we are first exploring the option of dialogue,” he said.
The commission has given a one-month moratorium before beginning firm enforcement in October, encouraging businesses to adjust their prices accordingly.
Bello urged stakeholders to act with patriotism and cooperate in creating a fair and competitive marketplace. He reiterated the FCCPC’s commitment to monitoring compliance and taking decisive action where necessary, aligning this initiative with President Bola Tinubu’s agenda of prioritizing the welfare of Nigerian citizens.
“The law empowers the commission to impose heavy fines for breaches and also prosecute offenders, which could lead to jail terms. “Let us work together to create a marketplace that is not only competitive but also fair and just,” he said.
