*The House of Representatives, again, directs the Federal Competition and Consumer Protection Commission to 鈥榠mmediately halt鈥� unfair business practices against Nigerian businesses, including Air Peace, Dangote Petroleum Refinery and Petrochemicals Limited, and other business concerns from unhealthy practices by their foreign competitors

Gbenga Kayode | 绿帽献妻

Urging watchfulness in tackling an alleged growing 鈥済ang-up to stifle Nigeria鈥�, by certain foreign business concerns, the Nigerian House of Representatives, in the National Assembly (NASS), Abuja, FCT, has frowned at those they described as 鈥渃ompanies coming together to offer predatory prices that are below the market rates in order to edge out Nigerian own enterprises.鈥�

绿帽献妻 reports the House of Representatives, in a recent motion moved by Hon. Babajimi Benson, Chairman of the House Committee on Defence and chieftain of the All Progressives Congress, Tuesday, July 16, 2024, in Abuja, restated his earlier call on the Federal Competition and Consumer Protection Commission (FCCPC) to 鈥渋mmediately halt the unfair business practices against Air Peace, Dangote Refinery and Petrochemicals Limited, and other business concerns from unhealthy practices by their foreign competitors.鈥�

Mr. Tunji Bello, new Executive Vice-Chairman and CEO of FCCPC

It is recalled that President Bola Ahmed Tinubu recently approved the appointment of Mr. Tunji Bello, as the new Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC.

The FCCPC disclosed in a statement that Bello officially, assumed office as the Executive Vice-Chairman of the market regulatory Commission Thursday, July 25, 2024, at the Headquarters, in Abuja, FCT.

Hon. Benson had told select reporters about the urgent need for the Commission, and other relevant Nigerian regulatory agencies to protect indigenous businesses from unhealthy competition with their foreign counterparts in view of the purported external conspiracy to destabilise the West African country鈥檚 economy.

Why FCCPC should be alert to predatory pricing strategies by foreign businesses

The Chairman of the Defence Committee also stated: 鈥淚 moved a motion on this recently (July 2), and my intention was to ensure that there is fairness, justice and good conscience in doing business in Nigeria.

鈥淚t will be very unfair if there are conspiracies by foreign companies to undermine Nigerian companies.

鈥淲hat we frowned on is these companies coming together to offer predatory prices that are below the market rates in order to edge out Nigerian own enterprises.鈥�

He further noted: 鈥淭hese companies don鈥檛 do these things in their own countries. If we don鈥檛 check it, it can stifle Nigerian businesses by reducing their prices and then, they jack up their prices.

鈥淚t is speculated that this happened recently against Air Peace. At some points, tickets from Lagos to London were selling as high as N4 million.

鈥淎ll of a sudden, a local company came in and all these companies just dropped prices lower than what Air Peace was offering.鈥�

Benson remarked: 鈥淲e spoke about Dangote; there is also a need to investigate what happened because if Dangote Refinery is the reason for this non-sale of crude oil, is this not part of a predatory way of ensuring that Nigeria keeps importing and Dangote refinery is left out?

鈥淭he FCCPC should also be watchful of this, and make sure that if there is a gang-up to stifle Nigeria, they should quickly step into it or do an investigative hearing in order for the world to be aware that Nigeria is informed about predatory pricing strategies.鈥�

On significance of adhering to international business ethics and standards

Earlier, the House of Representatives July 2, 2024, had called on the Federal Competition and Consumer Protection Commission to instantaneously stop unfair business practices targeting Air Peace, Dangote, and other Nigerian businesses by certain foreign companies operating in the country.

The Lower Legislative House in the NASS then mandated the Committees on Aviation, Commerce, and Petroleum (Upstream and Downstream) to probe the circumstances surrounding reported predatory pricing practices and unethical business behaviours, especially by foreign airlines and International Oil Companies (IOCs).

The resolutions at the time followed a motion Hon. Benson had presented on the House floor during a plenary session.

Hon. Benson, while moving the motion, observed that Nigerian businesses compete on an international level and within the local market.

He further highlighted the importance of adhering to international business ethics and standards, such as the United Nations Global Compact, the OECD Guidelines for Multinational Enterprises, and ISO 26000 for social responsibility in the business world.

According to the Chairman of House Committee on Defence, these standards require businesses to operate fairly, healthily, and efficiently, ensuring competitive trade practices both domestically and internationally.

Benson also averred that the Federal Competition and Consumer Protection Act (FCCPA) 2018 was enacted to address restrictive and unfair business practices.

This legislation, he emphasised, aims to prevent distorted competition and the flagrant abuse of market dominance in Nigeria.

The legislator stated: 鈥淎 fair and healthy competitive market enhances economic efficiency and safeguards consumer interests and welfare by offering a wide range of high-quality products and services at competitive prices.鈥�

Impacts of unfair competition by foreign businesses on Nigerian consumers

Hon. Benson as well disclosed that some Nigerian businesses have faced harsh and unfair competition in their dealings with foreign counterparts with negative effects on product and service consumers in the country.

He equally related that before Air Peace Airlines began offering the Lagos-London route for below N1 million (Naira), foreign airlines such as British Airways, Ethiopian Airlines, and Virgin Atlantic were charging as much as N4 million for a one-way ticket.

Benson said: 鈥淲hen Air Peace Airlines started offering tickets at a reduced price, other airlines responded by significantly undercutting Air Peace鈥檚 fares, seemingly with the intention of disrupting their London route operations.

鈥淔urthermore, the Dangote Oil Refinery and Petrochemicals Company is currently facing obstacles from International Oil Companies (IOCs) in Nigeria.

鈥淭hese IOCs are allegedly engaging in unfair business practices, including denying access to crude, thereby jeopardising Dangote鈥檚 operational sustainability.鈥�

The lawmaker also noted: 鈥淐oncerned that International Oil Companies (IOCs) often sell crude oil to Dangote Refinery at significantly higher prices than the market rate, forcing Dangote to import crude from distant countries like the United States, resulting in increased costs.

鈥淎dditionally, there is concern that, beyond these predatory pricing tactics and other unethical business practices by foreign airlines and IOCs, Nigerian businesses are facing unfair treatment both domestically and internationally, disrupting their smooth operations.鈥�

The APC chieftain affirmed that 鈥渢here is growing concern that these foreign multinationals are intentionally keeping Nigeria dependent on their services.

鈥淏y exporting crude oil and importing refined petroleum products, they ensure that Nigeria and Sub-Saharan Africa remain trapped in cycles of unemployment and poverty. This strategy benefits these companies by generating wealth for themselves at our expense.鈥�

House Committee on Legislative Compliance to ensure adherence to directives to regulatory agencies

Hon. Benson emphasised that unfair and disadvantageous business practices have led to the closure of once-thriving enterprises, which previously provided Nigerian customers with better alternatives at more affordable rates.

He further voiced concern that if these practices continue unchecked, Nigerian businesses like Air Peace Airlines will continue to suffer.

The House of Representatives later tasked the Committee on Legislative Compliance to ensure adherence to these directives, and stipulated a four-week deadline for reporting back to the Lower Chamber to allow for subsequent legislative measures to address the thorny issue negatively affecting the Nigerian economy.

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