The Federal Competition and Consumer Protection Commission (FCCPC) is set to sign a memorandum of understanding (MoU) with supermarket owners under the aegis of Retail Council of Nigeria (RCN) and National Association of Supermarket Operators of Nigeria (NASON) to ensure price transparency.
Acting Executive Chairman of FCCPC, Dr Adamu Abdullahi, disclosed this at a media briefing after a Stakeholders Meeting with members of RCN and NASON in Lagos yesterday.
Abdullahi noted that the meeting is in line with FCCPC's mandate of promoting collaboration among stakeholders.
He stated: "The concerns we have with the retail business, especially the formal sector, is this issue of price display on products. This has been a major concern for us.
"Price transparency is of utmost importance to us. Price gouging and victim prices are also something that we are interested in. Yes, we are not a price regulatory agency, we don't control prices, but we ensure that there is a level playing field, so that the market is open and people can come in, display their wares and sell at their own prices. The price dictates whether you sell your products or not, as far as we're concerned.
"It is a very important meeting for us. It is at their instance, but we believe that it is important enough for us to leave our office in Abuja and start coming to Lagos where we can sit down with them and discuss. And essentially, we believe that we are on the right path because we have agreed to form a small technical committee that will now draft an MOU, and have an understanding. And we are going to work together henceforth."
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In his remark, a trustee of RCN/NASON, Mr. Haresh Keswani, who is also the Group Managing Director of SPAR Nigeria, said the retailers should not be blamed for price volatility.
His words: "The journey of a product getting to the consumer is not just from a retailer to the consumer. May I remind all of you, retailers are not brand owners. Retailers do not manufacture most products.
"Maybe in case they do have a bakery or do something like that, but it's insignificant. Retailers are just representatives of various brands. These brands could be local, could be imported.
"And most retailers buy through distributors who again represent the brand. The whole idea today of this agency and our council has to sit down and work on the value chain. Let's understand who takes what responsibility.
"While the responsibility of the manufacturer on the quality, our responsibility as retailers lies with how well we display our products. And what kind of environment we create for the consumer and the quality of customer service we give. And then lies also the responsibility of the consumer."
