The Centre for the Promotion of Private Enterprise (CPPE) has expressed skepticism about the Federal Competition and Consumer Protection Commission’s (FCCPC) recent efforts to regulate prices in markets across Nigeria. According to CPPE Director/CEO Dr. Muda Yusuf, the FCCPC’s approach is not sustainable and may yield little to no results.
In a press statement, Yusuf criticized the FCCPC for seemingly transforming into a price control agency rather than fulfilling its core mandate of protecting consumer rights and fostering competition across sectors. He highlighted the commission’s excessive focus on retail pricing as evidence of this shift.
“The primary mission of the FCCPC should be to create a robust competition framework and protect consumer rights,” Yusuf stated. “Consumer protection is not about controlling prices at the retail level. The commission appears to be addressing symptoms rather than tackling the root causes of inflation.”
Yusuf argued that the complexities of pricing in the economy are not adequately understood by the FCCPC, which could lead to misguided efforts. He emphasized that pricing dynamics are influenced by a multitude of factors that require thorough analysis based on reliable data. He also pointed out the inadequacy of using simplistic comparisons, such as the price of a specific fruit blender in the U.S. versus Nigeria, to draw conclusions about consumer exploitation in the country.
“The FCCPC needs to conduct more diligent and thorough analyses before making allegations of profiteering,” Yusuf said. He urged the commission to refrain from intimidating small business operators, many of whom are micro and small enterprises operating in the informal sector.
Yusuf warned that the current trajectory of the FCCPC’s actions could suppress market activities and repress private enterprise, which would elevate regulatory risks in the Nigerian economy and undermine investor confidence. He noted that many businesses are already struggling with high operating costs and have been forced to shut down due to economic pressures.
Instead of focusing on retail prices, Yusuf suggested that the FCCPC collaborate with other government agencies to address the fundamental causes of inflation. He pointed out key factors such as the depreciation of the naira, high energy and logistics costs, food production challenges, and the impact of insecurity on supply chains as the real drivers of rising prices.
Yusuf also highlighted the growing trend of exporting Nigerian products to neighboring countries due to the relative strength of the CFA franc compared to the naira. This, he said, has added pressure on domestic prices as it becomes more profitable to sell goods outside Nigeria.
In conclusion, Yusuf called on the FCCPC to redirect its focus towards more pressing consumer protection issues in sectors like aviation, healthcare, energy, telecommunications, and financial services, where consumer rights violations are more prevalent. By addressing these areas and the underlying causes of inflation, the FCCPC can better fulfill its mandate and support a healthier economic environment.
