The Federal Government through the Federal Competition and Consumer Protection Commission, FCCPC, has given traders across the country one month to bring down the cost of their products.
This is coming on the heels of the persisting price hike on essential commodities in Nigerian markets for some months running.
The FCCPC has, therefore, given a one-month moratorium to traders and other market stakeholders involved in exploitative pricing to crash the prices of goods.
The order was given by the newly appointed Executive Vice Chairman of the FCCPC, Tunji Bello, on Thursday in Abuja.
Bello made the disclosure at a one-day stakeholders engagement on exploitative pricing in Nigerian markets.
The Executive Vice Chairman warned that the Commission will begin enforcement after the on month moratorium.
According to him, the meeting was to address the growing trend of unreasonable pricing of consumer goods and services and the unwholesome practice of market associations.
Bello disclosed that the Commission’s finding revealed that a fruit blender known as Ninja was being sold at a popular supermarket in Texas for 89 Dollars (N140,000.00). But that the same product was displayed for N944,999.00 in a supermarket in Victoria Island, Lagos.
He, therefore, wondered about the basis for the arbitrary hike in the price of the blender compared to the Texas, United States of America.
Bello warned that the unwholesome practices including price fixing were threatening the stability of the economy.
He said, ”Under Section 155, violators whether individuals or corporate entities face severe penalties. These include substantial fines and imprisonment if found guilty by the court.
”This is intended to deter all parties involved in such illicit activities. However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.
”It is in this spirit that we are giving a moratorium of one month (September) before the Commission will start firm enforcement. ”
Speaking at the interactive session, Bello said the government was aware of most of the problems raised by the market stakeholders.
He said, “We have heard and you have genuine issues. And the Government has the responsibility to address the problems. But generally, let us talk to ourselves too.
“There are also gang-ups to exploit consumers by traders.”
NAN report that some of the market stakeholders who spoke at the engagement adduced reasons for the price hike. They gave the high cost of transportation, insecurity, and multiple taxation among others were reasons for the continuous increase in prices of goods and services.
The Chairman, National Association of Nigerian Traders, FCT Chapter, Ifeanyi Okonkwo, blamed import tariff. He stated that charges on imported goods at the Ports also contributed to the hike in prices.
He, therefore, appealed to the Commission to set up a task force and involve the association in its enforcement.
A spare part dealer at Kugbo Spare Part Market, Emmanuel Odugwu blamed the price hike on transportation. He stated that the initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000. But noted that it now costs over one million Naira to transport the same.
In her contribution, the Liaison Manager, Flour Mills, Ms. Kemi Ashiri, put the blame on regulators. She said that fines by regulators needed to be harmonized for businesses to thrive.
Also Ikenna Ubaka, who spoke on behalf of supermarket owners, blamed some financial interest rates to the price hike. He alleged that banks’ interest rates to them were over 30 per cent. Coupled by rent increments and hikes in prices by distribution/ supply chains.
Ubaka also added that electricity distribution companies were charging supermarkets exorbitantly.
The representative of Master Bakers Association, Solomon Ukeme blamed the hike in prices of bread to high cost of confectionaries.
He said that the rapid increment of major ingredients like flour, sugar, and butter contributed to the high cost of confectioneries.
According to him, a bag of flour formally sold for N34,000 was now goes for N74,000.
Ukeme also pointed out that multiple taxation was the major cause of the high cost of bread.
The News Agency of Nigeria reports that various market associations also attended the engagement.
source: NAN
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