FCCPC Concerned over High Food Cost, Accuses Traders of Price Fixing, Illegal Acts

•Traders list fuel price hike, police extortion as factors 

•Afenifere: Nigerians are facing economic hardship in the guise of economic reforms

Chuks Okocha, Onyebuchi Ezigbo in Abuja and Sunday Ehigiator in Lagos

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over the high cost of food and other essential commodities in the country.

FCCPC cited price gouging, exploitative pricing, and illegal activities of some market cartels, such as heavy levies, price fixing, and anti-competition practices, as some of the factors responsible for the high food cost.

The commission also denied reports that it gave traders an ultimatum to crash prices of goods and essential commodities across the country.

But traders listed police exploitation at various checkpoints across the country, the recent fuel price hike, and the unfavourable dollar-to-naira rate as some of the factors responsible for the hike in the commodities.

Speaking at a One-day Stakeholders Engagement on Exploitative Pricing, organised yesterday in Lagos State by FCCPC, Vice Chairman and CEO of FCCPC, Tunji Bello, stated that there was a “growing trend of unreasonable pricing of consumer goods across the country and the unwholesome practice of market associations engaging in price fixing on the other hand”.

Bello stated, “We don’t have the power to control price but we are here to talk about fair pricing. This development is unwholesome and the earlier we come together to address it the better. Therefore, this is a platform for conversation to reach an understanding of the growing trend.

“Let me take this opportunity to debunk reports from our Abuja edition by some online platforms. Contrary to what they reported, we never gave market traders an ultimatum to crash prices across the country. This is quite ridiculous.

“Our mandate doesn’t include price control, we are not here to fix prices or dictate to any law-abiding trader or manufacturer, we are to ensure that there is no price fixing or gouging.

“As a commission, we are not acting out of the green wind, we have carried out extensive surveys across the country and our findings were disturbing. We identified the practices of price fixing, gouging and other anti-consumer practices.

“We noticed that the margins in the prices of imported goods are very disproportionate and indeed, prices of locally produced goods are excessively inflated. In some areas, some traders hoard grains to create scarcity, thereby distorting the market, and resulting in high prices of such food.

“In Lagos, for example, we found that one supermarket on the Island displayed a blender for N950,000, the same blender that was on sale in a popular supermarket in the US for $89, which is equivalent to N140,000.

“With other taxes, even if it’s sold for N250,000 nobody would complain, but to say N950,000 is excessive. That’s what we are talking about. Such pricing models are unacceptable.

“We cannot deny that the price of fuel has affected a lot of things and the unfavourable exchange rate has affected the cost of production in local currency but nothing justifies selling a blender bought for N140,000 for N950,000 in Nigeria.”

Bello added, “Perhaps the case of BUA cement best illustrates how middlemen distort the market and make it more miserable for consumers.

“Such practices are against the law and constitute some of the offences the commission is against. To be clear, gouging and price fixing are not only unethical but illegal under the FCCPC Act, which empowers the commission to eliminate anti-competitive practices or misleading, unfair, deceptive or questionable marketing.

“Sanction includes N10 million fines or a jail term of around three years. But rather than applying the law, the commission is using the option of dialogue with you to collaborate with us to help check unfair practices in the market.”

The FCCPC chief executive also said, “I am pleased to announce that the commission is upgrading its consumer engagement portal to make it more inclusive and interactive and in real-time.

“In simple terms, it means when fully calibrated, it will be possible for any consumer who feels aggrieved to lodge complaints and upload receipt of transactions as evidence and such complaints will be processed promptly.”

Reacting to FCCPC’s concern, the Iyaloja-General of Nigeria, Mrs Folasade Tinubu-Ojo, stated, “Although the prices of commodities are primarily determined by the market forces of demand and supply, the current reality of social economic downturn in the world requires the intervention of the FCCPC, particularly in Nigeria.

“This is because our African cultural spirit centres on empathy for the weak, and providing support for the frail and the downtrodden. Let this be our priority rather than making abnormal profits in our businesses, especially at this time when there is a recession around the country.

“It is a fact that transporting goods and farm produce from the point of harvest to the market attracts more cost in terms of logistics. Some traders are helpless but we always emphasise at our meetings that we need to be considerate.

“Even if we have been getting 50 per cent profit in our trades before, this time around we have to ensure we get minimal profit on our commodities. The checkpoints are also not helpful.

“Transportation of goods is frustrated by several police checks. Also, the recent increase in pump prices has forced the market prices of products to rise to levels that were not anticipated.

“I want to assure you that the challenging situation in the country will be history by the grace of God. On a final note, I want to also appeal to you that we should have a kind of symposium that will comprise every stakeholder, including the market leaders, transport union, police, road safety, including the FCCPC, etc., that has to do with logistics across the nation.”

Afenifere:  Nigerians Are Facing Economic Hardship in the Guise of Economic Reforms

National Publicity Secretary of the Ayo Adebanjo wing of Afenifere, Justice Faloye, accused the President Bola Tinubu administration of economically sabotaging Nigerians in the guise of implementing economic reforms.

Faloye, in an interview with ARISE NEWS, criticised the government’s handling of the economy and the repression of citizens protesting the worsening economic conditions.

He called for the immediate release of those protesters jailed for treason, saying, “We are very concerned and we are asking for the immediate release of those locked up for treason.

“Even if you were violent during protest, you could be charged for wilful destruction of property and other things, but never treason and the question that we have to ask is, who is even treasonable here?

“Because what Nigerians are facing is economic sabotage. They keep on telling us it is economic reform, but I say it is economic sabotage.”

Faloye expressed concern over what he viewed as an escalation of authoritarian tactics, comparing the current situation to the days of military dictator Sani Abacha.

He said, “We are moving back to the days of Abacha if we are not careful.” 

Faloye further criticised the government’s failure to address the country’s reliance on petrol imports, which he said accounted for 55per cent of Nigeria’s import bill.

He said, “Our biggest problem right now is the import of petrol. This is a government that came in and within 100 days, we would have expected that 55 per cent of the import bill could be taken care of.

“Our refineries have gulped over N20 billion and yet nothing is happening. And then we hear these stories about Dangote refineries. So, what do you expect the people to do?”

But a policy lobby group, Independent Media and Policy Initiative (IMPI), asked organised labour to also monitor the performance of states and local governments rather than focus on the federal government over the harsh economic conditions.

The group said resources available to the sub-nationals had witnessed tremendous growth under the present dispensation.

Speaking to journalists in Abuja on the skyrocketing prices of goods in the country, especially foodstuff, the chairman of IMPI, Chief Niyi Akinsuji, said the situation could not be attributed to one factor alone.

Akinsuji said a combination of factors such as insecurity, currency floating and low production capacity were responsible for the present food crisis.

He said allusions that the removal of fuel subsidy had led to the current food crisis might not be entirely correct, adding that the group’s findings show that petrol constitutes an insignificant proportion of the cost elements affecting prices of goods in the country.