The Federal Competition and Consumer Protection Commission (FCCPC) is stepping up its campaign against unethical market practices such as price fixing and gouging, as the rising cost of goods and services continues to concern Nigerians. At a recent One-Day Stakeholders’ Engagement on Exploitative Pricing held in Lagos, Tunji Bello, the FCCPC’s Executive Vice Chairman, highlighted the severity of the issue, stating that there is more to price increases than meets the eye.
Bello explained that the FCCPC’s meeting with stakeholders, including market leaders, industry captains, and service providers, was crucial in tackling exploitative pricing practices. These engagements are part of the agency’s broader strategy to gain support in its fight against market manipulation and unethical practices.
The commission's investigations revealed that some traders, working within cartels, were manipulating prices by charging exorbitant membership fees to new entrants in the market. These fees create barriers that allow only certain traders to operate, leading to price fixing and limited competition. Bello emphasized that while the FCCPC is not aiming to control prices, it is determined to put an end to practices that harm consumers.
The meeting was filled with passionate debates, accusations, and counter-accusations. Princess Olaoti Shodiya Ade, representing the All Farmers Association of Nigeria (AFAN), supported the FCCPC’s findings and called for an end to the "coat of greed" worn by some market stakeholders. She pointed to various levies imposed on traders by market leaders, which ultimately drive up the prices of goods and burden consumers. Shodiya also urged the Iyaloja General, Folasade Tinubu-Ojo, to investigate and address these practices.
However, not all stakeholders agreed with these claims. Mrs. Abimbola Jinadu, a market leader, argued that the high cost of goods was due to the deplorable state of the nation’s roads and multiple levies imposed by government agencies. She denied accusations of price fixing, insisting that the levies collected were necessary for market maintenance.
Dr. Olushola Obadimu, Director General of the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), offered another perspective, blaming the unpredictable business environment for the price instability. He expressed concerns over the fluctuating cost of commodities, which traders often find unpredictable.
In her response, Folasade Tinubu-Ojo appealed to traders to be mindful of their profit margins and avoid taking undue advantage of consumers, especially during tough economic times. She also suggested that future engagements include not only manufacturers and traders but also other stakeholders like law enforcement agencies, customs officers, and local government officials to find a comprehensive solution to the issue.
The FCCPC’s Bello welcomed this suggestion, confirming that the commission plans to organize a broader stakeholder meeting to address these challenges holistically.
With the FCCPC’s commitment to protecting consumer rights and cracking down on unethical practices, there is hope that these efforts will lead to a fairer marketplace, ultimately benefiting both consumers and businesses. As the agency intensifies its work, it is clear that collaborative action is needed to tackle price fixing, gouging, and other exploitative practices head-on.