Price Control: FCCPC insists on one month deadline to traders

Despite the outcry by stakeholders and members of the Organised Private Sector (OPS) over the one month deadline issued by the Federal Competition and Consumer Protection Commission (FCCPC) to traders to slash the cost of goods or face sanctions, the commission has dug into its heels, saying the one month notice is sacrosanct and will begin enforcement after the deadline elapses.

Director, Special Duties & Strategic Communication for the commission, Ondaje Ijagwu, said while they appreciate the feedback from OPS and other stakeholders, the timeframe given to businesses is more than enough time to adjust “their practices and ensure full compliance with laws aimed at protecting consumers and fostering fair competition.”

Saying that price fixing occurs when competitors or market associations, without their own products, ‘collude to set prices’, he said their aim is to safeguard consumers from unfair and deceptive practices and ensure robust competition across all sectors.

Asserting that they are aware that prices in a competitive marketplace are determined solely by the forces of supply and demand, he said price control is outside their responsibilities and they have never considered intervening in the market to regulate or control prices.

“Any claims made contrary to this 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 FX fluctuations and fuel subsidy removal. These factors certainly impact pricing, but do not excuse or justify exploitative practices that are anti-consumer. Our proposed actions in the retail sector are targeted and evidence-based, responding to specific instances where consumers are vulnerable to such exploitation.”

He went on to claim that some discoveries made during their market surveillance and a recent disclosure by the Chairman of BUA Cement, Abdul Samad Rabiu, underscore the critical need for our oversight. “Rabiu revealed that despite BUA Cement’s effort to sell cement at N3,500 per bag, their plan was undermined by dealers who inflated prices to as much as N7,000 to N8,000 per bag. This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing. Such practices make it difficult for ethical businesses to thrive,” he said.

He added that 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. He said they remain committed to a balanced approach that respects the dynamics of a free market while ensuring that consumers are protected from harmful practices.

encouraging businesses to engage in ethical and lawful practices that contribute to a fair and competitive marketplace, he said the commission does not seek to suppress private enterprise as has been alleged; adding that their 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, we’ll take decisive action. We’ll continue to work collaboratively with all stakeholders; businesses, consumer groups, and other government agencies, to address both the immediate and remote causes of exploitative pricing. Our approach combines enforcement with cooperation, aiming to protect consumers and maintain a healthy competitive environment. We will continue to monitor the marketplace and take action against any business practices that violates the law,” he said.