The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the persistent increase in prices of goods and services despite the appreciation of the naira against the dollar.
The Commission’s acting Executive Vice Chairman/ Chief Executive Officer, Adamu Abdullahi, on its X handle on Wednesday, said the situation was unacceptable, and the FCCPC was committed to protecting consumers from exploitation.
Mr Abdullahi noted that the move was in response to consumers’ complaints and in line with sections 17 (a), (e), (g), (l), (s); 72(2)(a); 108(1)(b); 124; & 127(1)(a)(b) of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
“The FCCPC understands the significant financial strain these rising prices place on Nigerian households. As a result, the Commission is taking proactive steps to address this issue.
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“While the FCCPC cannot directly regulate prices, the Commission will utilise its existing legal framework to enforce fair competition and consumer protection provisions. This includes monitoring and investigating unusual price hikes, addressing consumer complaints, and taking action against businesses that engage in anti-competitive practices such as price-fixing, price gouging or cartel formation,” the statement read.
Price Inflation
The Commission had directed its operatives to intensify monitoring both formal and informal markets, where businesses may be taking advantage of market conditions to unfairly inflate prices and ramp up enforcement activities.
According to Mr Abdullahi, the FCCPC will work collaboratively with trade associations, farmer groups, and other stakeholders to identify and remove unnecessary barriers to entry in various sectors, combat price-fixing, and dismantle cartels.
According to him, this will encourage increased competition, ultimately leading to lower consumer prices.
“The Commission remains committed to educating consumers about their rights and empowering them to make informed choices.
“We will engage in advocacy and public awareness campaigns to raise awareness about price gouging and other unfair trade practices and provide guidance on identifying and reporting such practices,” he said.
He added that the FCCPC recognised the importance of working alongside other government agencies to tackle the complex issue.
He disclosed that the Commission will collaborate with relevant regulatory bodies to develop a comprehensive and coordinated response to the sharp practices.
“The FCCPC is committed to ensuring a fair and competitive marketplace for all Nigerians. We encourage consumers to continue reporting suspected price gouging and other unfair trade practices through contact@fccpc.gov.ng. Together, we can work towards a more stable, fair, and competitive marketplace for all Nigerians,” Mr Abdullahi added.
Naira appreciation
The recent gains recorded by the local currency at both the official and unofficial markets in the past weeks came amidst ongoing efforts by the government to stabilise the currency and address inflationary pressure in the country following an unprecedented drop in the currency value.
Financial experts have attributed the recent gains of the naira to the ongoing reforms by the government after the local currency, on several occasions within the first quarter of the year, plunged to unprecedented lows.
The Central Bank of Nigeria (CBN) recently sold $10,000 to each Bureau De Change operator at a considerably lower rate to boost liquidity and curb the price distortions affecting the naira exchange rate in the forex markets.
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