*Tunji Bello, Executive Vice-Chairman and CEO of the Nigeria鈥檚 Federal Competition and Consumer Protection Commission, cautions businesses against exploitative pricing practices, stating the market regulatory Commission will impose 鈥榮evere penalties鈥�, including prosecution/imprisonment of those found guilty of profiteering schemes in the country

Gbenga Kayode | 绿帽献妻

Following reported instances of price fixing, gouging, and manipulation against consumers of products and services in marketplaces, the Federal Competition and Consumer Protection Commission (FCCPC) has warned businesses engaging in exploitative pricing practices, threatening severe penalties, including prosecution for those found guilty.

绿帽献妻 reports Mr. Tunji Bello, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC, stated this at a stakeholders鈥� meeting held Thursday, August 29, 2024, in Abuja, FCT.

FCCPC’s Monitoring and Enforcement Team in a supermaket in Abuja聽 聽 聽 聽 File Photo

Bello, while addressing participants in the forum, expressed concern over the increasing trend of unreasonable pricing of consumer goods and services across Nigeria.

The EVC/CEO of FCCPC also attributed the unsettling development to both price fixing by market associations and price gouging by individual sellers in the country.

What FCCPC鈥檚 recent market surveys in major cities revealed

He averred: 鈥淥ur findings are quite disturbing, to put it mildly.鈥�

Bello emphasised the urgency of addressing the burning economic issue, as he said 鈥渁s a statutory body, whose mandate is to cater to consumer rights, we cannot allow this unhealthy trend to continue.鈥�

According to him, the FCCPC recent market surveys conducted discreetly across several cities, including Abuja, Lagos, Kano and Port Harcourt, revealed alarming instances of price manipulation.

He equally highlighted 鈥渁 significant discrepancy鈥� in the price of a fruit blender sold at a supermarket in Lagos, Nigeria, compared to price of the same item in the United States (US).鈥�

The FCCPC Chief explained: 鈥淎 fruit blender called 鈥楴inja鈥� is displayed on the shelf at $89 (roughly N140,000) in the US.

鈥淢eanwhile, the same product was displayed at a popular supermarket at Victoria Island in Lagos for N944,999 on the same day and at the same hour. This represents more than 500 percent inflation of the cost.鈥�

Bello as well identified the unethical practices observed in local markets, where cartels inflate prices by controlling the supply chain.

He stated: 鈥淩ather than allow free trade, the market cartel then inserts themselves between the produce farmers and the retailers, buying in large quantities from the producers at cheap rates and, in turn, selling to market retailers at much higher prices.鈥�

Describing this practice 鈥渘o longer acceptable鈥�, the EVC/CEO assured the FCCPC would crack down on those involved in such profiteering schemes.

Bello underscored the illegality of these practices under the Federal Competition and Consumer Protection Act (FCCPA).

A food market in Lagos

The Executive Vice-Chairman of FCCPC averred that 鈥減rice gouging and price fixing are not only unethical but patently illegal under the FCCPA.

鈥淭he FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers for undue profit.鈥�

FCCPA provisions for market violators

As regards possible penalties for violators of the Commission鈥檚 extant regulations, Bello noted the FCCPA provides for severe penalties for violators, including fines and imprisonment.

He said Section 107 of the Act specifies that a natural person found guilty could face imprisonment for up to three years or a fine of up to N10 million, or both.

Corporate entities could be fined up to 10 percent of their turnover from the previous business year.

One-month moratorium before strict enforcement across markets

According to Bello, despite these strong measures to be meted out to any erring businesses or organisations, the Commission yet has assured stakeholders that its current approach is not intended to be punitive.

He stated: 鈥淚n the spirit of democracy, we are first exploring the option of dialogue.鈥�

The Commission has given a month鈥檚 moratorium before beginning firm enforcement in October, encouraging businesses to adjust their prices accordingly.

Bello urged stakeholders to act with patriotism and cooperate in creating a fair and competitive marketplace.

The EVC/CEO of FCCPC added: 鈥淭he law empowers the Commission to impose heavy fines for breaches and also prosecute offenders, which could lead to jail terms.鈥�

鈥淟et us work together to create a marketplace that is not only competitive but also fair and just.鈥�

The Commission, however, reiterated its commitment to monitoring compliance and taking decisive action where necessary in line with President Bola Ahmed Tinubu鈥檚 agenda of prioritising the welfare of Nigerian citizens.

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