Nigeria’s Federal Competition and Consumer Protection Commission Takes Aim at Exploitative Pricing Amid Rising Inflation
The Federal Competition and Consumer Protection Commission (FCCPC) has announced plans to engage market leaders and stakeholders in the supply and distribution chain to address the issue of exploitative pricing of consumer goods amid rising inflation. The move comes as the country grapples with a high inflation rate, which has seen prices charged for imported products and local commodities rise disproportionately.
According to the National Bureau of Statistics’ latest report, inflation rates rose across the board in June 2024, with the headline inflation rate increasing to 34.2% in June 2024, up from 22.8% in June 2023 and 34.0% in May 2024. The FCCPC’s Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, acknowledged the high inflation rate but noted that prices charged are often disproportionate for imported products and excessive for local commodities.
“We recognise that the exchange rate has impacted the value of the Naira, but prices charged are, in most cases, disproportionate for imported products and excessive for locally produced ones,” Bello said.
The FCCPC has identified the retail segment as a key area where unfair practices are prevalent, with some market associations engaging in price fixing at the expense of consumers. To address this issue, the Commission is working with market leaders to reach an understanding on reasonable pricing of products and to eschew undue profiteering at the expense of consumers during economic challenges.
The FCCPC has already taken steps to promote transparency by mandating supermarkets to display prices visibly. “Already, the Commission has mandated operators of supermarkets to visibly display prices of products on their shelves to shoppers for transparency and to avoid an ambush situation where they only get to know of the prices after payment has been made and a receipt issued,” Bello explained.
The Commission’s advocacy for Nigerian consumers is consistent with President Bola Tinubu’s renewed hope agenda, which aims to foster a better market culture that makes allowance for the trader’s margin without leaving buyers exploited. “Such interaction will be sustained by the Commission to foster a better market culture that makes allowance for the trader’s margin without leaving buyers exploited,” Bello added.
The FCCPC’s efforts to address exploitative pricing come at a critical time for Nigerian consumers, who are struggling to cope with the rising cost of living. By engaging with market leaders and stakeholders, the Commission hopes to promote a more transparent and fair market culture that benefits both consumers and traders.
