Barely 48 hours after it vowed to take stringent actions against businesses in Nigeria engaging in price inflation, the Federal Competition and Consumer Protection Commission (FCCPC), on Thursday, sealed the popular 4U Supermarket in Abuja, for engaging in price gouging.
Consumers have been expressing concerns about the skyrocketing costs of goods despite the recent strengthening of the Naira against the US dollars and other major currencies.
The FCCPC, had on Tuesday, vowed it would take stringent actions against businesses engaging in anti-competitive practices such as price-fixing, price gouging or cartel formation.
In a statement signed by its Acting Executive Vice Chairman/ Chief Executive Officer, Dr. Adamu Abdullahi, the agency expressed worry that despite the recent appreciation of the Naira against the dollar, consumers continue to face escalating costs without a corresponding decrease in prices of goods and commodities.
Describing the situation as unacceptable, the Commission expressed concerns over the significant financial strain the price inflation by traders are placing on Nigerian households, and pledged its commitment to protecting consumers from exploitation.
“This situation is unacceptable, and the FCCPC is committed to protecting consumers from exploitation.
“The FCCPC understands the significant financial strain these rising prices are placing on Nigerian households. As a result, the Commission is taking proactive steps to address this issue”, the FCCPC said.
See full text below:
FCCPC Takes Action to Address Rising Prices and Protect Consumers
Pursuant to Sections 17 (a), (e), (g), (l), (s); 72(2)(a); 108(1)(b); 124; & 127(1)(a)(b) of the Federal Competition and Consumer Protection Act (FCCPA) 2018
Wednesday, April 17, 2024: The Federal Competition and Consumer Protection Commission (FCCPC) is aware of the concerns expressed by Nigerians regarding the continued rise in prices of goods and services. Despite the recent appreciation of the Naira against the dollar, consumers continue to face escalating costs without a corresponding decrease in prices. This situation is unacceptable, and the FCCPC is committed to protecting consumers from exploitation.
The FCCPC understands the significant financial strain these rising prices are placing on Nigerian households. As a result, the Commission is taking proactive steps to address this issue.
While the FCCPC cannot directly regulate prices, the Commission will utilise its existing legal framework to enforce fair competition and consumer protection provisions. This includes monitoring and investigating unusual price hikes, addressing complaints filed by consumers, and taking action against any businesses found to be engaging in anti-competitive practices such as price-fixing, price gouging or cartel formation.
The Commission has directed its operatives to intensify monitoring of both formal and informal markets, where businesses may be taking advantage of market conditions to unfairly inflate prices, and ramp up enforcement activities.
The operatives will be working collaboratively with trade associations, farmer groups, and other stakeholders to identify and remove unnecessary barriers to entry in various sectors, combat price-fixing, and dismantle cartels. This will encourage increased competition, ultimately leading to lower prices for consumers.
The Commission remains committed to educating consumers about their rights and empowering them to make informed choices. We will engage in advocacy and public awareness campaigns to raise awareness about price gouging and other unfair trade practices and provide guidance on how to identify and report such practices.
The FCCPC recognises the importance of working alongside other government agencies to tackle this complex issue. We will collaborate with relevant regulatory bodies to develop a comprehensive and coordinated response to anti-competitive practices, price gouging, and other consumer protection issues.
The FCCPC is committed to ensuring a fair and competitive marketplace for all Nigerians. We encourage consumers to continue reporting suspected price gouging and other unfair trade practices through contact@fccpc.gov.ng. Together, we can work towards a more stable, fair, and competitive marketplace for all Nigerians.
Dr. Adamu Abdullahi
Ag. Executive Vice Chairman/ Chief Executive Officer