The Federal Competition and Consumer Protection Commission (FCCPC) has imposed a one-month moratorium on traders and other market stakeholders involved in price hiking to reduce the price of goods.
The newly appointed Vice Chairman of the FCCPC, Mr. Tunji Bello, stated this on Thursday at a one-day stakeholders meeting on price gouging held in Abuja.
Mr. Bello said the commission would commence enforcement after the moratorium period.
He said the meeting was aimed at addressing the growing trend of unfair pricing of consumer goods and services as well as the evil practices of market associations.
Mr. Bello explained the findings of the commission that a fruit blender called Ninja was being sold for $89 (140,000.00 Naira) at a popular supermarket in Texas while the same product was being sold for 944,999.00 Naira at a supermarket in Victoria Island, Lagos. Bello wondered why the price of mixers is being arbitrarily increased compared to Texas in the US.
He said evil practices such as price fixing are threatening economic stability.
“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 the government was aware of most of the issues raised by market participants.
“We have heard and you have genuine issues and the government has the responsibility to address the problems but generally, let us talk to ourselves too.
“There are also gang-ups to exploit consumers by traders,” he said.
Some market stakeholders at the event cited high transportation costs, uncertainty, and multiple taxation as reasons for the continued rise in prices of goods and services.
President of the National Association of Nigerian Traders FCT chapter, Ifeanyi Okonkwo, said levies on imported goods at the ports also contributed to the price rise.
Okonkwo appealed to the Commission to set up a task force and involve the association in enforcement.
Mr. Emmanuel Odugwu from Kugbo Spare Parts market said the initial cost of transporting a trailer loaded with tyres from Lagos to Abuja was N450,000 but now they are transporting over N1 million for the same cost.
The Liaison Manager, Flour Mills, Ms. Kemi Ashiri, said fines imposed by regulators needed to be harmonised for businesses to thrive. Ikenna Ubaka, who spoke on behalf of supermarket owners, alleged that interest rates charged by banks to supermarkets are over 30 percent, while rent hikes and increased distribution and supply chain prices are the reasons for the high cost of goods.
Ubaka also alleged that electricity distribution companies are charging exorbitant rates to supermarkets.
Mr. Solomon Ukeme, president of the Master Bakers Association, said the rapid increase in key ingredients such as flour, sugar, and butter contributed to the soaring price of confectionery.
He said a bag of flour that previously sold for 34,000 naira now sells for 74,000 naira.
He acknowledged that multiple taxation was also the main cause of the high price of bread. Journalists reported that various market associations also participated in the event.
