The Federal Government, acting through the Federal Competition and Consumer Protection Commission (FCCPC), has pledged to implement stringent regulatory measures against traders who are “unfairly inflating prices” of goods and commodities. Despite the recent appreciation of the Naira against the United States Dollar, the FCCPC has expressed concern that consumers continue to face escalating costs without a corresponding decrease in the prices of goods and commodities.
Adamu Abdullahi, the Commission’s Chief, stated in an announcement Wednesday that: “This situation is unacceptable, and the FCCPC is committed to protecting consumers from exploitation.” He said the FCCPC acknowledges the significant financial burden these rising prices are placing on Nigerian households. Consequently, the Commission said it would take proactive steps to address this issue.
Abdullahi further explained, “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 Explainer gathered that the Commission has directed its operatives to intensify monitoring of both formal and informal markets, where businesses may be exploiting market conditions to unfairly inflate prices.
The operatives will collaborate 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 initiative aims to foster increased competition, ultimately leading to lower prices for consumers.
Meanwhile, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has stated that the Nigerian economy is moving in the right direction as the new administration’s policies have begun to slow down food inflation.
Edun made these remarks during a virtual appearance on Channels Television’s Business Incorporated programme on Tuesday from Washington DC, where he is attending the IMF-World Bank Spring Meetings.
In recent weeks, prices of food and basic commodities have skyrocketed as Nigerians grapple with one of the country’s most severe economic crises, triggered by the current government’s dual policies of petrol subsidy removal and floating of the national currency.
Recently, the National Bureau of Statistics (NBS)’s Consumer Price Index (CPI) report revealed that the food inflation rate in March 2024 stood at 3.62%, a decline of 0.17% from February 2024, when it was 3.79%. However, despite the drop recorded by the NBS, many Nigerians have lamented that the reduction has not reflected in the cost of basic food items like garri, millet, yam, bread, as well as energy and housing costs.
Although the Naira has appreciated against the Dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,100/$1 now, the inflation rate remains at 33.20% for March 2024 and the interest rate at 24.75%.