Federal Competition and Consumer Protection Commission, FCCPC, has given a one-month moratorium to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods.
The newly appointed Executive Vice Chairman of FCCPC, Mr Tunji Bello, said this at a one-day stakeholders engagement on exploitative pricing yesterday in Abuja.
According to Bello, the commission will begin enforcement after the moratorium.
He said the meeting was to address the growing trend of unreasonable pricing of consumer goods and services, and the unwholesome practice of market associations.
Bello described the commission’s finding that a fruit blender known as Ninja is being sold at a popular supermarket in Texas for $89 (N140,000) but the same product was displayed for N944,999.00 in a supermarket in Victoria Island, Lagos.
Bello wondered the basis for the arbitrary hike in the price of the blender compared to Texas.
He said the unwholesome practice including price fixing is threatening the stability of the economy.
“Under Section 155, violators whether individuals or corporate entities face severe penalties including substantial fines and imprisonment if found guilty by the court.
”This is intended to deter all parties involved in such illicit activities. However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.
”It is in this spirit that we are giving a moratorium of one month (September) before the commission will start firm enforcement,” he said.
Bello said government is aware of most of the problems raised by market stakeholders.
”We have heard and you have genuine issues, and government has the responsibility to address the problems, but generally, let us talk to ourselves too.
”There are also gang-ups to exploit consumers,” he said.
Some of the market stakeholders, who spoke at the engagement, said the high cost of transportation, insecurity and multiple taxation among others are reasons for the continuous increase in the prices of goods and services.
The Chairman, National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, said charges on imported goods at the ports also contributed to the hike in prices.
Okonkwo appealed to the commission to set up a task force and involve the association in its enforcement.
Mr Emmanuel Odugwu from Kugbo Spare Parts Market said the initial cost of transporting a trailer load of tyres from Lagos to Abuja was N450,000 but now, it costs over one million naira to transport the same.
The Liaison Manager, Flour Mills, Ms Kemi Ashiri, said fines by regulators need to be harmonised for businesses to thrive.
Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that bank interest rate to them is over 30 percent, rent increment and hike in prices by distribution/supply chains are reasons for the high cost of goods.
Ubaka also alleged that electricity distribution companies are charging supermarkets exorbitantly.
Mr Solomon Ukeme, who represented Master Bakers Association, noted that the rapid increment of major ingredients like flour, sugar and butter contributed to the high cost of confectioneries.
He said a bag of flour formally sold for N34,000 is now being sold for N74,000.
He added that multiple taxation is also a major cause of the high cost of bread.
The News Agency of Nigeria reports that various market associations also attended the engagement.
