Babatunji Wusu –
The Federal Competition and Consumer Protection Commission (FCCPC) has addressed recent concerns by clarifying that it has no intention of regulating the prices of food products or other goods in Nigeria. This response follows apprehensions raised by the Organised Private Sector and other stakeholders about the FCCPC’s recent directives aimed at curbing practices like price gouging and price fixing.
In a statement released on Tuesday, Ondaje Ijagwu, Director of Special Duties and Strategic Communication at the FCCPC, emphasized that the commission’s role is not to control prices but to ensure fair market practices. He reiterated that the FCCPC’s mandate focuses on preventing exploitative behaviors and promoting a competitive market environment, not on price control.
The FCCPC stated: “We categorically assert that prices in a competitive marketplace are determined solely by the forces of supply and demand. Price control is entirely outside the scope of our responsibilities. We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are baseless.”
While acknowledging that factors like foreign exchange rate fluctuations and the removal of fuel subsidies impact pricing, the FCCPC stressed that these factors do not justify exploitative practices that harm consumers. The commission emphasized that such practices are harmful and must be addressed, regardless of external economic influences.
The FCCPC highlighted a specific case in the cement sector as an example of the type of exploitative behavior it seeks to combat. Abdul Samad Rabiu, Chairman of BUA Cement, reported that despite his company’s efforts to sell cement at a fair price of N3,500 per bag, some dealers inflated prices to between N7,000 and N8,000 per bag. This situation underscores the need for the FCCPC’s regulatory efforts.
Reassuring the business community, the FCCPC clarified that its actions are not meant to stifle private enterprise but to protect consumers from harmful practices. The statement read: “The FCCPC does not seek to suppress private enterprise; our role is to ensure that the market operates on principles of fairness, transparency, and accountability.”
To provide businesses with adequate time to comply, the FCCPC has introduced a one-month moratorium before full enforcement of its regulations begins. This grace period allows businesses to adjust their practices in line with consumer protection laws and fair competition principles.
The FCCPC remains committed to upholding the Federal Competition and Consumer Protection Act 2018. It will continue to monitor the marketplace, enforce regulations, and take action against any practices that violate the law. “Consumers and businesses alike can trust that we will remain vigilant in upholding the principles of fair competition and consumer protection,” the statement concluded.
