To curb price fixing and other unethical practices, the Federal Competition and Consumers Protection Commission (FCCPC) has appealed to stakeholders in the economy’s production and distribution value chain to join forces with the government.
The agency has also created an interactive portal for complaints.
The call was made by FCCPC boss, Mr. Tunji Bello, in Lagos while addressing the captains of large/small-scale industries, leaders of market associations, transport operators, and service providers, at a town hall meeting hosted by the commission.
According to him, the one-day stakeholders’ engagement on exploitative pricing, held at the Oregun area of Lagos, was necessitated by startling discoveries made by the commission during a nationwide survey.
“We discovered that some traders form cartels in the markets and put barriers in the form of ridiculous membership fees intended to ensure price fixing in the market. “Without joining them, they won’t allow anyone to sell goods in the market or provide services. Such practices are against the law and constitute some of the offences the Commission is against,” said the FCCPC boss.
Continuing, he said, “The purpose of the town-hall meeting initiative is to engage you the stakeholders in the production and retail segment of the market as well as service providers, to hear your own stories, to achieve a consensus for the benefit of all of us.”
The Lagos stakeholders’ meeting was a sequel to the one held in Abuja two weeks ago.
The FCCPC initiative is coming at a time when Nigerians are experiencing sharp increases in the prices of food items and transportation costs across the country.
While acknowledging that the exchange rate and the increase in petrol price has made the old prices unsustainable, Bello however, frowned at disproportionate increases in the prices of food items which he said are often perpetrated by ‘cartels’ to exploit consumers.
Even though sections of the law empower the commission to deal decisively with offenders, Bello said FCCPC chose to first explore the option of dialogue to arrive at a consensus to deal with the growing trend.
Section 17 of the FCCPC Act empowers the Commission to eliminate anti-competitive practices, misleading, unfair, deceptive, or unconscionable marketing, trading, and business practices. It prescribes sanctions including a fine of up to N10m and a jail term of three years for anyone found guilty by the court.
To facilitate a better engagement, Bello disclosed that the FCCPC had upgraded its portal through which aggrieved consumers could lodge complaints and their grievances would be addressed promptly.
On the economic outlook, Bello stated that the removal of taxes on imported food items, pharmaceutical products, and transportation was part of measures being taken by Tinubu’s administration to cushion the effects of the reforms introduced to reposition the Nigerian economy.
He sought the cooperation of the traders to ensure that the consumers get the benefits through reduced prices.
“Such laudable measures by President Tinubu would however be in vain if the benefits are not passed down to the consumers,” said Bello.
The Executive Commissioner, Operations, FCCPC, Dr. Abdullahi Adamu, emphasised during his welcome address that the purpose of the stakeholders’ engagement was to tackle sharp practices and address the role of market associations in contributing to price hikes of goods and services.
Adamu highlighted that President Tinubu’s administration is committed to reducing the cost of goods and services, urging stakeholders to collaborate with the government to find amicable solutions.
“The government of President Tinubu is interested in bringing the prices of goods and services down,” he stated, calling on stakeholders to engage in constructive dialogue to achieve this goal.
Speaking at the event, the Iyaloloja General of Nigeria, Folasade Tinubu-Ojo, echoed these sentiments, urging traders to refrain from exploitative pricing practices.
She called on the traders to support the government’s efforts by being considerate in their pricing.
“We need to assist the government in forcing down the prices of goods and services by being considerate and shunning the tendencies to make abnormal profits,” she said.
The General Manager of the Lagos State Consumers Protection Agency (LASCOPA), Mr. Afolabi Sholebo, also weighed in, questioning the logic behind punitive pricing practices. “Why are we punishing ourselves? If we love ourselves so much, why are we punishing ourselves?” he asked.
Sholebo expressed concern over the influence of market associations that often pressured traders into maintaining high prices, even when some are willing to sell at cheaper rates.
“There is always a gang-up against some traders who decide to sell their goods and services at cheaper rates through market associations,” he lamented.
He further emphasized the need for a shift in mindset regarding pricing.
“We have to consider this issue of pricing. This is not the time to start arresting people. We know what is happening—some of us are our own enemies. Some people buy at cheaper prices and sell at exorbitant rates. We cannot blame the government for everything,” Sholebo concluded.
