FCCPC Gives Traders One Month to Reduce Food Prices or Face Enforcement
FCCPC Gives Traders One Month to Reduce Food Prices or Face Enforcement
The Federal Competition and Consumer Protection Commission (FCCPC) has issued a strong ultimatum to traders and market stakeholders across Nigeria, giving them one month to significantly reduce food prices. This directive comes in response to the continued surge in the cost of essential goods, which has placed a substantial burden on Nigerian households despite the recent appreciation of the Naira.
Tunji Bello, the FCCPC’s New Executive Vice Chairman, led a one-day stakeholders’ engagement meeting in Abuja, where he expressed concern over the exploitative pricing practices prevalent in the market. Bello highlighted a specific instance where a fruit blender, which retails for $89 in Texas, was being sold for a staggering N944,999 at a supermarket in Victoria Island, Lagos. Such exorbitant price disparities, according to Bello, are unacceptable and have prompted the Commission to take decisive action.
“Our findings indicate that these unwholesome practices, including price fixing and arbitrary price hikes, are not only exploitative but also threaten the stability of our economy,” Bello stated. He emphasized that while the FCCPC’s approach is not punitive at this stage, it will become so after the one-month moratorium if traders do not comply.
The FCCPC’s mandate, as outlined by Bello, is to protect consumers from exploitation by ensuring fair competition and addressing anti-competitive practices like price gouging and cartel formation. He also warned that under Section 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, violators—whether individuals or corporate entities—face severe penalties, including substantial fines and imprisonment.
During the engagement, various stakeholders voiced their concerns and challenges. Mr. Ifeanyi Okonkwo, Chairman of the National Association of Nigerian Traders (FCT Chapter), attributed the high food prices to multiple factors, including excessive charges on imported goods at ports, high transportation costs, and insecurity. Okonkwo urged the FCCPC to establish a task force that would involve market associations in its enforcement activities.
Similarly, Mr. Emmanuel Odugwu from the Kugbo Spare Parts market explained that the cost of transporting goods has more than doubled, further contributing to the price surge. Ms. Kemi Ashiri, the Liaison Manager of Flour Mills, and Mr. Solomon Ukeme of the Master Bakers Association also cited the high cost of production inputs, rent, and energy, as well as multiple taxation, as key drivers of the increasing prices of essential goods like flour and bread.
In response to these concerns, Bello acknowledged the genuine challenges faced by traders but urged them to consider the broader impact of their pricing practices on consumers. He reiterated that while the government is committed to addressing these issues, it is equally determined to prevent traders from exploiting consumers under the guise of these challenges.
The FCCPC has pledged to intensify market monitoring and enforcement activities after the moratorium period. The Commission is also calling on all consumers to report instances of price gouging and other unfair trade practices through its official channels.
