The Federal Competition and Consumer Protection Commission (FCCPC) has issued a one-month moratorium for traders and market stakeholders involved in exploitative pricing practices to reduce the prices of goods. This directive was announced by the newly appointed Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, during a one-day stakeholders engagement on exploitative pricing held on Thursday in Abuja.
Call to Address Unreasonable Pricing:
Mr. Bello highlighted the rising trend of unreasonable pricing of consumer goods and services, as well as the concerning practices of market associations. He provided a striking example of price disparity, noting that a fruit blender known as “Ninja” was being sold for $89 (approximately N140,000) in a Texas supermarket, while the same product was priced at N944,999 in a Victoria Island, Lagos supermarket. Bello questioned the justification for such a significant price hike, calling it an “unwholesome practice” that threatens the stability of the economy.
Legal Consequences for Violators:
– Under Section 155 of the relevant legislation, Bello warned that violators—whether individuals or corporate entities—could face severe penalties, including substantial fines and imprisonment if found guilty by the court. However, he emphasized that the current approach is not intended to be punitive but rather to encourage cooperation and patriotism among stakeholders.
Moratorium Period:
– The FCCPC has provided a moratorium period of one month, during September, for traders to adjust their pricing practices. Enforcement of the regulations will commence after this period if compliance is not observed.
Acknowledgment of Stakeholder Concerns:
– Bello acknowledged the genuine issues raised by market stakeholders, emphasizing that the government is aware of these challenges and has a responsibility to address them. However, he also urged traders to avoid exploitative practices, stressing that there are instances where traders collaborate to exploit consumers.
Encouragement of Patriotic Cooperation:
– The FCCPC’s stance during this engagement is to promote a spirit of patriotism and cooperation among market stakeholders. Bello urged all involved to take this opportunity to align their pricing strategies with fair practices before enforcement actions begin.
The engagement underscores the FCCPC’s commitment to protecting consumers from exploitative practices and ensuring that market pricing remains fair and reasonable. Traders and other stakeholders are encouraged to take the moratorium seriously to avoid legal repercussions and contribute to the stability of the Nigerian economy.
