Bello: FCCPC to Engage Market Leaders, Others Over Exploitative Pricing of Consumer Goods

James Emejo and Emmanuel Addeh in Abuja

The Executive Vice Chairman/Chief Executive, Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, yesterday disclosed that the commission would engage leaders of markets and other stakeholders in the supply and distribution chain, as part of a broader initiative to check exploitative pricing of consumer goods.

In a statement, Bello said while the exchange rate had impacted the value of the Naira, prices charged are, in most cases, disproportionate for imported products and excessive for locally produced ones.

He said the unfair practice was prevalent in the retail segment of the distribution chain where some market associations are engaged in price fixing at the expense of consumers.

He noted that by working with market leaders, the commission believes an understanding could be reached on reasonable pricing of products to eschew undue profiteering at the expense of consumers at a time of economic challenges.

The FCCPC boss added that such interaction, which would take place across the country, would be sustained by the commission to foster a better market culture that makes allowance for the trader’s margin without leaving buyers exploited.

Bello said, “The commission’s advocacy for Nigerian consumers in this direction is consistent with the renewed hope agenda of President Bola Tinubu.

“Already, the commission has mandated the operators of supermarkets to visibly display the prices of products displayed on their shelves to shoppers for transparency and avoid an ambush situation where they only get to know of the prices after payment would have been made at the counter and receipt issued.”

He added that the engagement was pursuant to Sections 17(l) (s),116 (2),124,125,138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

Meanwhile, the economy is currently under a high inflationary environment, following the removal of fuel subsidy and the floating of the local currency, leading to the skyrocketing prices of basic commodities.

According to the National Bureau of Statistics (NBS), the Consumer Price Index (CPI), which is the rate of change in goods and commodities, further rose to 34.19 per cent,  in June compared to 33.95 per cent in May.

Food inflation increased by 15.62 per cent year on year to  40.87 per cent compared to 25.25 per cent in June 2023.

Month-on-month, the food index also increased to 0.26 per cent to 2.55 per cent compared to 2.28 per cent in May.

Similarly, the All items less farm produces and energy” or core inflation, which excludes the prices of volatile agricultural produces and energy stood increased to 27.40 per cent year on year in June, up by 7.34 per cent compared to 20.06 per cent in June 2023. Month on month, the core index increased by 0.05 per cent to 2.06 per cent in June compared to 2.01 per cent in May.

Food inflation was attributed to increases in prices millet whole grain, garri, guinea corn, etc (bread and cereals class), yam, water yam, coco yam (potatoes, yam and other tubers class).

Others are groundnut oil, palm oil, etc (oil and fats class) and catfish dried, dried fish-sardine, mudfish (fish class) among others.

On the other hand, core inflation resulted from the highest price increases in rents (actual and imputed rentals for housing class), journey by motorcycle, bus journey intercity (under passenger transport by road class).

Other contributors include accommodation service, consultation fee of a medical doctor, laboratory service, x-ray photography, (under medical services class), and pharmaceutical products.