The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that it has no plans to regulate food prices or other commodity prices in Nigeria.
Instead, the commission aims to curb exploitative practices and maintain a competitive marketplace.
In a statement released on Tuesday by Ondaje Ijagwu, Director of Special Duties and Strategic Communication, the FCCPC responded to concerns from the Organised Private Sector and other stakeholders regarding recent directives to halt practices like price gouging and price fixing.
The FCCPC emphasized that its role is to ensure fair market practices rather than controlling prices. “Prices in a competitive marketplace are determined by supply and demand, not by our intervention. We have never, and will never, consider regulating prices. Claims to the contrary are baseless,” the statement read.
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The commission acknowledged that external factors, such as foreign exchange fluctuations and the removal of fuel subsidies, influence pricing. However, it stressed that these factors do not justify exploitative practices that harm consumers. “While external factors affect pricing, they do not excuse exploitative practices that undermine consumer welfare,” the FCCPC noted.
To illustrate its point, the FCCPC cited a recent issue in the cement industry where BUA Cement’s Chairman, Abdul Samad Rabiu, reported that despite the company’s efforts to sell cement at N3,500 per bag, prices were inflated to between N7,000 and N8,000 per bag by dealers. “This situation exemplifies the type of exploitative conduct that the FCCPC is committed to addressing,” the commission said.
The FCCPC assured the business community that its actions are intended to protect consumers rather than suppress private enterprise. “Our goal is to ensure the market operates on principles of fairness, transparency, and accountability, not to stifle private business,” the statement added.
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To allow businesses time to adjust, the FCCPC has granted a one-month moratorium before enforcement of the new directives begins. “This moratorium provides businesses with time to align their practices with laws designed to protect consumers and promote fair competition,” the commission stated.
As it continues its oversight role, the FCCPC remains dedicated to enforcing the Federal Competition and Consumer Protection Act 2018, pledging to uphold fair competition and consumer protection. “We will monitor the marketplace and take action against any practices that violate the law. Both consumers and businesses can trust that we will uphold the principles of fair competition and consumer protection,” the statement concluded.