The Federal Competition and Consumer Protection Commission has announced its intention to crack down on unfair trade practices, including collusion, price gouging, price fixing, and cartel activities.
FCCPC disclosed this in a statement in it official X’s handle on Saturday.
Dr. Abdullahi highlighted the depreciation of the Nigerian currency, the naira, attributing it partly to online dollar purchases that devalued the naira, leading to a significant increase in prices.
In response, the FCCPC has launched nationwide interventions to address inflation and deceptive trade practices. Operations at markets in Abuja uncovered instances of retailers manipulating weight scales, misrepresenting quantities, and selling pest-infested food items. The commission also seized rice bags from brands that had not been locally manufactured since 2018, indicating potential malpractice.
While the FCCPC cannot directly control prices, it is committed to ensuring fair competition and consumer protection. Enforcement operations will continue across formal and informal markets nationwide to eliminate exploitative practices and safeguard consumers’ interests.
The FCCPC’s actions aim to address the challenges posed by inflation and deceptive trade practices, reflecting its commitment to protecting consumers and promoting fair competition in Nigeria.
The statement read in part, “This has necessitated The FCCPC, Federal Competition and Consumer Protection Commission, to make several interventions across the country, in the wake of the psuedo-inflation that has affected the prices of goods and services.
” Aside the exorbitant prices of goods, retailers had also resorted to manipulating weight scales, and tampering with the actual measure of the quantities of the goods they sell to customers at certain prices. On Wednesday the 24th of March, 2024, in a targeted enforcement operation at Garki Modern Market in Abuja, it was discovered that the weight scales were deceptive and the quantities in a 25kg or 50kg of rice were much less than stated on the bags. In another enforcement operation at 4U Supermarket in Abuja, it was discovered that there were discrepancies between displayed prices and checkout prices in the outlet. Some of their food items were also infested by pests, which they were still selling to the public.
“About 97 bags of Rice made by Stallion and Caprice, which had not been produced in the country since 2018 were discovered and evacuated by the commission. Another enforcement drive by the commission at the Woji area in Port-Harcourt revealed that the supermarkets were selling under-weight and rebagged rice.
“The Ag. Executive Vice Chairman/ Chief Executive Officer of the FCCPC, Dr. Adamu Abdullahi has explained that such raids will be conducted in both formal and informal markets across the country, to eliminate unfair trade practices such as collusion, price gouging, price fixing and the running of cartels.
“The commission cannot directly regulate prices, but he reassured consumers that the commission will use its existing legal framework to enforce fair competition and provide consumer protection. He also stated that they will be collaborating with trade associations, farmer groups and others, to remove and eradicate unnecessary barriers to entry in various sectors to combat price fixing and dismantle cartels. Unusual price hikes will be investigated and dealt with appropriately. The commission also urges consumers to report suspected price gouging and other sharp trade practices.
“The issue of price gouging has been of grave concern to the general public with traders blaming everything on the rise of the dollar. When one dollar rose to 1800 naira, a crate of eggs was sold at 2700 naira.
“The dollar dropped to about 1100 naira and the price of the same crate continued to rise to about 3800 naira. Sugar too was at a cost of 70,000 naira and less, and the drop in the dollar did not stop the price from peaking to almost 80,000 or more. The prices may vary from one place to the other and may not be exact, but are a fair reflection of how the drop in the dollar rate has not resulted in a commensurate drop in the prices of goods.
“There was a raid by the Kano Anti-corruption and Public Complaints Commission on certain stores that hoarded thousands of tonnes of bagged rice, causing a sharp rise in the cost of locally produced rice. That raid was instrumental in the drop in the price of a bag of rice in the markets. Millers were taking rice from farmers on the cheap, (probably subsidised rice), bagging them, and exporting to neighbouring countries to make a kill, as the naira devalued against the CFA.
“The market has been wild with price increases that are not backed by market forces. Just recently, DSTV hiked their prices and their customers have continued to groan over these practices that have gone on for years without any checks.
“The FCCPC has already announced that it will be reviewing these hikes by the DSTV to ensure that subscribers get a fair value. Without these interventions, Nigerians will be consumed by their Nigerianness, making life unbearable with a price gouging trend that doesn’t seem to have an end.”
