The Federal Competition and Consumer Protection Commission (FCCPC) has firmly dismissed claims suggesting that it intends to regulate prices within the Nigerian market. The commission clarified that its recent directives are focused solely on preventing exploitative practices and ensuring a competitive marketplace, not on controlling prices.
This clarification was made in a statement issued by the FCCPC’s Director of Special Duties and Strategic Communication, Ondaje Ijagwu, on Tuesday. The statement was in response to feedback from the Organised Private Sector (OPS) and other stakeholders, who had raised concerns regarding the commission’s recent directive to businesses, particularly urging them to cease practices such as price gouging and price fixing.
“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. We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are baseless,” the FCCPC stated.
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The commission emphasized that while various economic factors, such as inflation and supply chain disruptions, influence pricing, these do not justify anti-consumer practices. “These factors certainly impact pricing, but they do not excuse or justify exploitative practices that are anti-consumer,” the statement added.
To illustrate the necessity of its interventions, the FCCPC cited a recent case within the cement industry. Abdul Samad Rabiu, Chairman of BUA Cement, revealed that despite his company’s efforts to maintain a fair price of N3,500 per bag, dealers had significantly inflated prices, pushing them to as high as N7,000 to N8,000 per bag. “This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing,” the commission noted.
In reassuring the business community, the FCCPC stressed that its actions are not aimed at stifling private enterprise but rather at safeguarding consumers from harmful practices. “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,” the statement read.
To allow businesses adequate time to comply with the directives, the FCCPC has provided a one-month moratorium before enforcement begins. “We have granted 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,” the commission stated.
The FCCPC further assured that it will continue to monitor the marketplace and will not hesitate to 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 concluded.
This development comes at a time when many Nigerians are grappling with rising prices of essential goods, and the FCCPC’s commitment to curbing exploitative practices is seen as a critical step in protecting consumer rights while maintaining a healthy competitive environment in the market.
