On Wednesday, the Federal Competition and Consumer Protection Commission (FCCPC) unveiled plans to tackle consumer exploitation in pricing through new partnerships with traders, market leaders, and key stakeholders in the production and distribution sectors. The announcement was made during a town hall meeting held in Ikeja, Lagos.
Mr. Tunji Bello, the Executive Vice Chairman/CEO of the FCCPC, led the call for unity among stakeholders to combat unethical pricing practices. Speaking to a packed audience of industry leaders, market association heads, transport operators, and service providers, Bello emphasized the importance of collective action against price fixing and cartels that manipulate market conditions.
“Our findings during a nationwide survey revealed troubling practices,” Bello stated. “We discovered that some traders form cartels in the markets and impose barriers such as excessive membership fees to enforce price fixing. Without joining these cartels, traders are not permitted to sell goods or provide services in the market,” Bello revealed. “Such practices are illegal and constitute some of the offences the Commission is committed to addressing.”
Bello explained that the purpose of the town hall was to engage stakeholders and gather their perspectives on addressing these issues. “The purpose of this initiative is to engage with stakeholders in the production and retail segments of the market, as well as service providers, to hear your experiences and reach a consensus for the benefit of all,” he said.
National Survey Findings and Policy Impact
The town hall in Lagos follows a similar event held in Abuja two weeks prior and is part of a broader FCCPC initiative to address rising prices in Nigeria. Bello highlighted that the initiative comes amid significant increases in food and transportation costs across the country.
“While the exchange rate and increase in petrol prices make previous prices unsustainable, we see disproportionate price hikes often driven by cartels exploiting consumers,” Bello noted. He emphasized that despite the FCCPC’s legal authority to impose sanctions, including fines up to ₦10 million and three-year prison terms, the commission prefers to start with dialogue to resolve these issues.
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Section 17 of the FCCPC Act empowers the commission to eliminate anti-competitive practices and impose severe penalties for violations. Bello also pointed out the commission’s upgraded complaint portal, designed to facilitate prompt resolution of consumer grievances. “We have upgraded our portal through which aggrieved consumers can lodge complaints, and their grievances will be addressed promptly,” he added.
Bello also discussed recent economic measures taken by the Tinubu administration to alleviate the impact of economic reforms. “The removal of taxes on imported food items, pharmaceutical products, and transportation is part of the administration’s efforts to cushion the effects of reforms,” Bello explained.
He urged traders to cooperate and ensure that these benefits are passed down to consumers. “Such commendable measures by President Tinubu would, however, be in vain if the benefits are not passed down to the consumers,” he said.
Stakeholder Reactions and Concerns
During the meeting, Dr. Abdullahi Adamu, FCCPC Executive Commissioner for Operations, addressed various complaints from stakeholders, including a representative from the farmers’ association who accused traders of overpricing goods.
Adamu acknowledged these concerns and emphasized the need for cooperation. “The meeting was meant to confirm the findings of our survey and listen to the complaints of different groups,” Adamu said.
The General Manager of the Lagos State Consumers Protection Agency (LASCOPA), Mr. Afolabi Sholebo, also weighed in.
Sholebo questioned the logic behind punitive pricing practices and the role of market associations in maintaining high prices. “Why are we punishing ourselves? If we love ourselves so much, why are we punishing ourselves?” Sholebo asked.
He expressed concern over market associations pressuring traders into high pricing, even when some are willing to sell at lower rates. “There is always a gang-up against some traders who decide to sell their goods and services at cheaper rates through market associations,” he lamented.
Sholebo called for a shift in mindset regarding pricing. “We have to consider this issue of pricing. This is not the time to start arresting people. We know what is happening—some of us are our own enemies. Some people buy at cheaper prices and sell at exorbitant rates. We cannot blame the government for everything,” Sholebo concluded.
