The Federal Competition and Consumer Protection Commission (FCCPC) has announced a one-month grace period for traders and market stakeholders engaged in exploitative pricing to reduce their prices on goods.
Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, made this announcement during a one-day stakeholder engagement focused on exploitative pricing on Thursday in Abuja.
Bello emphasized that the commission will initiate enforcement actions following the conclusion of the moratorium. He highlighted that the purpose of the meeting was to tackle the rising issue of unreasonable pricing of consumer goods and services, as well as to address the negative practices within market associations.
Bello highlighted the commission’s discovery that a fruit blender branded as Ninja was available at a well-known supermarket in Texas for $89 (approximately N140,000). In stark contrast, the same product was priced at an astonishing N944,999 in a supermarket located in Victoria Island, Lagos.
He expressed concern over the rationale behind such a significant price increase for the blender when compared to its cost in Texas, USA.
Bello emphasized that these unethical practices, including price fixing, pose a serious threat to the stability of the economy.
According to Section 155, individuals and corporate entities that violate regulations may face significant penalties, including hefty fines and imprisonment, if convicted by the court.
“This measure is designed to deter all parties involved in such unlawful activities. However, our current approach is not focused on punishment. I urge all stakeholders to adopt a spirit of patriotism and collaboration,” he stated.
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In this context, he announced a one-month moratorium for September, during which the commission will not enforce penalties, allowing stakeholders time to comply before stricter measures are implemented.
Bello acknowledged that the government is aware of many concerns raised by market stakeholders. “We recognize that you have valid issues that need to be addressed, and it is the government’s duty to tackle these challenges. However, let us also engage in constructive dialogue among ourselves,” he added.
He noted that there are instances of collusion among traders aimed at exploiting consumers.
