The Federal Competition and Consumer Protection Commission (FCCPC) has vowed to protect Nigerian consumers by tackling price fixing and other exploitative practices in markets across the country.
Price gouging is an unfair practice that takes advantage of crises or economic hardships to inflate prices arbitrarily, while price fixing occurs when competitors or market associations, without their own products, collude to set prices.
The Commission, in a statement issued by Ondaje Ijagwu, Director, Special Duties (& Strategic Communication) in Abuja, this afternoon, insisted, "While promoting competition is essential for economic health, as evidenced in sectors like telecommunications, it is equally important to enforce laws against practices that undermine fair competition.
"The FCCPC remains committed to a balanced approach that respects the dynamics of a free market while ensuring that consumers are protected from harmful practices.
"We encourage all businesses to engage in ethical and lawful practices that contribute to a fair and competitive marketplace. The FCCPC does not seek to suppress private enterprise; our role is to ensure that the market operates on principles of fairness, transparency, and accountability. When businesses, as illustrated by the cement sector case, engage in practices that harm consumers, the FCCPC will take decisive action."
The FCCPC pledged to work collaboratively with all stakeholders; businesses, consumer groups, and other government agencies, to address both the immediate and remote causes of exploitative pricing, adding, "Our approach combines enforcement with cooperation, aiming to protect consumers and maintain a healthy competitive environment."
According to the organisation, it has given a one-month moratorium before enforcement begins, providing businesses with the necessary time to adjust their practices and ensure full compliance with laws aimed at protecting consumers and fostering fair competition.
It added "The FCCPC stands firm in its commitment to enforcing the Federal Competition and Consumer Protection Act (FCCPA) 2018. We will continue to monitor the marketplace and take action against any business practices that violate the law.
"Consumers and businesses alike can trust that we will remain vigilant in upholding the principles of fair competition and consumer protection."
The commission asserted that prices in a competitive marketplace are determined solely by the forces of supply and demand, adding, it did not, therefore, contemplate price control, having considered it outside the scope of its responsibilities.
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"We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are baseless and unfounded. Our recent directives are not about controlling prices but are focused on curbing exploitative practices and anti-competitive behaviours that distort the marketplace and harm consumers.
"We recognise the complexities of the current economic environment, including challenges such as foreign exchange fluctuations and fuel subsidy removal. These factors certainly impact pricing, but they do not excuse or justify exploitative practices that are anti-consumer. The Commission's proposed actions in the retail sector are targeted and evidence-based, responding to specific instances where consumers are vulnerable to such exploitation," the commission.
The FCCPC said that the disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, on how BUA Cement's effort to sell cement at a fair price of N3,500 per bag, was undermined by dealers who inflated prices to as much as N7,000 to N8,000 per bag, exemplified the kind of exploitative conduct that it was committed to addressing.
According to the organization, such practices make it difficult for ethical businesses to thrive and should not be condoned in the country.
