The House also asked the Federal Competition and Consumer Protection Commission (FCCPC) to immediately halt the alleged unfair business practices by multinationals.
The House of Representatives has resolved to probe alleged exploitative and predatory pricing practices against Nigerian businesses by foreign multinationals operating in Nigeria.
The House also asked the Federal Competition and Consumer Protection Commission (FCCPC) to immediately halt the unfair business practices perpetrated by some foreign businesses operating in Nigeria.
The decision to embark on the probe followed a motion moved by Babajimi Benson (APC, Lagos) on Tuesday during plenary.
Moving the motion, Mr Benson stated that international business ethics and standards require businesses to operate in a fair, healthy, and efficient manner while ensuring competitive trade practices at home and abroad. However, some of these companies have not been doing that.
He cited the example of Air Peace Airline at Gatwick Airport in the UK and the recent allegation by Dangote Oil Refinery and Petrochemicals Company against international oil companies.
"Prior to the commencement of the Lagos-London route by Air Peace Airlines for below N1 million, foreign airlines like British Airways and Ethiopian Airlines sold their one-way air tickets for as high as N4 million. As soon as Air Peace Airlines commenced the sale of their tickets at a lower price, other airlines dropped their prices far below that of Air Peace Airlines," he said.
The House mandated the Committees on Aviation, Commerce, Petroleum (Upstream and Downstream), and Foreign Affairs to investigate the circumstances surrounding the alleged predatory pricing practices.
In addition, the House asked the committees to investigate the alleged unethical business competitive behaviours by foreign airlines and IOCs and report within four weeks for further legislative action.
The House also mandated the Committee on Legislative Compliance to ensure compliance.
The motion was adopted unanimously when it was put to vote by the presiding officer, Deputy Speaker Ben Kalu.
Motion amid mass exit of companies from Nigeria
This motion is coming amid what has been termed a mass exodus by multinationals in Nigeria.
In the last couple of years, the number of companies that have closed their shops in Nigeria has increased.
The companies have cited the devaluation of the naira and the increased cost of operations for their exit.
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In August 2023, GlaxoSmithKline (GSK) Consumer Nigeria Plc, the second-biggest drug producer in Nigeria, ceased operation in the country by terminating its marketing and distribution agreement and appointed third-party distributors to sell their medications and vaccines.
PREMIUM TIMES reported the exit of US consumer goods powerhouse Procter & Gamble (P&G) from Nigeria in 2023.
P&G, the maker of iconic brands including Pampers, Gillette, Ariel, Always, and Oral-B, could incur charges anywhere between $1 billion and $1.5 billion after-tax from restructuring its operations in Nigeria and Argentina, two markets where the business has been problematic for the corporation.
In March 2023, Unilever announced an end to the production of its homecare and skin-cleansing products in the country because those categories were "margin dilutive", and the decision needed to be taken to make its Nigerian operation profitable.
There are two different committees of the House probing the exit of these companies from Nigeria.
