Mixed Reactions have greeted federal government’s one month ultimatum to traders and other market stakeholders, through Competition and Consumer Protection Commission (FCCPC) to crash prices of goods.
The FCCPC claimed in the statement that the stakeholders are involved in exploitative pricing, threatening that the commission will begin enforcement after the expiration of the notice.
A statement released on Thursday statement by the commission, said its Executive Vice-Chairman of the FCCPC, Tunji Bello, gave the order at a one-day stakeholders’ engagement on exploitative pricing in Abuja.
But the issue issue has polarized stakeholders, with some applauding the proposed action while others outrightly reject it.
But some stakeholders have faulted the ultimatum, liking it to a military era order, where, in most cases, wholistic views were not given to issues before coming to conclusions and hence dishing out hasty decisions, usually by enforcements.
While the stakeholders appear to appreciate the concerns of the commission in ensuring that consumers get fair value for money spent, they observed at the same time that, issues like decayed infrastructure, inaccessible roads, lack of preservation facilities and multiple exploitation checkpoints which inevitably add up to high cost of goods and services should be tackled before coming out with threat of sanctions.
“How can the Commission regulate over issue it does not have control. Not even the traders and not farmers in some cases have control due to insecurity that have prevented them from accessing their farms.,” says an analyst who preferred anonymity.
Commenting on the issue, an importer, who simply identified himself as Bashir said, “As stable as some government officials claim that the exchange rate is stable at between N150/160 to a dollar, that is still out of the reach of an average importer, who battles shenanigans at the ports even with the unstable customs exchange rate. Where are the goods and services that the commission intends to enforce price control or is it the aborted sale of rice at the discounted price of N50,000,?.
Friday Ameh, Lagos based analyst says the country appreciates the zeal and commitment of the commission to see affordable goods, but doubts the practicality even when the impact of the three-month waiver on import of some essential food items have not started. So which goods are they going to enforce price control and the use of exploitation, in this instance, could be relative, considering the hassles of inter-state travels and transportation. May be when the promised CNG buses are operational and trucks included, that the proposed action could be seen to be reasonable.”
But, another respondent, agrees completely with the commission saying that there abound Shylock and irresponsible traders and middlemen, who are capitalising on the current situation to exploit consumers.
“There are some goods and services, including pharmaceuticals that do not have any direct bearing with FX, but the traders are capitalising on the general rise in prices to discretely alter the price tags. In most cases, we are enemies of ourselves. What has fx, for instance, got to do with fresh vegetables from a nearby farm and brought to the market at exorbitant prices, all in the name of Tinubu’s government’s action of removing subsidy,” says a concerned citizen.
Alhaji Usman, a trader, told metrobusinessnews.com (MBN) that he agrees totally with the commission’s planned action.
“It is heartwarming that the commission has told the whole world that the proposed clampdown is based on extensive survey before coming to that conclusion. How many, among the federal agencies can come out openly to issue out the warning based on empirical outcome of a survey?. Besides, they have promised to be civil in their approach and we hope the leadership will be able to curtail possible excesses of its overzealous staff. It’s a commendable start though.”
However, according to Bello, the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and unwholesome practices of market associations.
Bello said: “The issue of critical national importance of the day is the growing trend of unreasonable pricing of consumer goods and services across the country, and the unwholesome practice of market associations engaged in price fixing.
‘’As a responsive organization, we have carried out discreet market surveys extensively across the country in the past few weeks. Our findings are quite disturbing, to put it mildly. Therefore, our gathering here today (yesterday) is to underscore the gravity of the situation and the urgency of the need to work together to check this unwholesome development.
“As a statutory body whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue. To be sure, we quite recognize that an unfavourable exchange rate has negatively impacted the cost of production in local currency. However, the margin in pricing goods and services is unreasonable or excessive in a few cases.
‘’We have observed, for instance, that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated. This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.
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This is as the National Bureau of Statistics (NBS) recently pegged the inflation rate at 33.40 per cent, with the food inflation at over 40 per cent.
The high inflation rate has worsened since President Bola Tinubu on May 29, 2023, pronounced an end to fuel subsidies.
Explaining further, FCCPC also said it would not fail to invoke the full weight of the law on defaulters.
He said, “In view of the current situation in Nigeria, let me however be very unequivocal. Price gouging and price fixing are not only unethical, but patently illegal under the FCCPA.
“As such, the FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers.
“However, our approach today is not punitive or adversarial… dialogue and collaboration are equally important tools in fostering a fair marketplace.”