The Federal Competition and Consumer Protection Commission (FCCPC) has firmly denied plans to regulate food prices or other commodity costs in Nigeria. The commission clarified that its recent directives are aimed solely at addressing exploitative practices and ensuring a fair and competitive marketplace.
In a statement released by Ondaje Ijagwu, Director of Special Duties and Strategic Communication, the FCCPC responded to concerns from the Organised Private Sector and other stakeholders regarding its directives to halt practices such as price gouging and price fixing.
The FCCPC emphasized that its role does not include price control but is focused on maintaining market fairness. “We categorically assert that prices in a competitive marketplace are determined solely by the forces of supply and demand. Price control is entirely outside the scope of our responsibilities,” the statement read.
The commission acknowledged that external factors like foreign exchange fluctuations and fuel subsidy removals affect pricing but stressed that these factors do not justify exploitative practices. A recent example in the cement industry highlighted by the FCCPC illustrated the type of harmful conduct it aims to address. Abdul Samad Rabiu, Chairman of BUA Cement, reported that dealers inflated cement prices from N3,500 per bag to as high as N7,000 to N8,000.
The FCCPC reassured businesses that its actions are not intended to suppress private enterprise but to protect consumers from unfair practices. The commission has granted a one-month moratorium before enforcing its directives to allow businesses time to adjust their practices.
“We will continue to monitor the marketplace and take action against any business practices that violate the law,” the FCCPC stated, reaffirming its commitment to upholding the principles of fair competition and consumer protection under the Federal Competition and Consumer Protection Act 2018.
