Despite Persisting Inflation, Naira Volatility, Federal Agency Gives Traders One Month to Reduce Prices or Face Penalties

Confidence UbaniAugust 29, 20241 Mins read443

The Federal Competition and Consumer Protection Commission (FCCPC) has given traders and market stakeholders across Nigeria a one-month deadline to reduce the prices of goods. FCCPC Executive Vice Chairman Tunji Bello announced this directive during a stakeholders’ meeting in Abuja on Thursday. He stated that exploitative pricing practices will no longer be tolerated.

Bello pointed out examples of excessive pricing, such as a fruit blender that sells for $89 in the United States being priced at ₦944,999 in Lagos. He warned that the commission will take strict enforcement actions if prices are not reduced within one month.

“Under Section 155 (of the Commission’s Act), violators whether individuals or corporate entities face severe penalties including substantial fines and imprisonment if found guilty by the court. This is intended to deter all parties involved in such illicit activities”, he stated.

While Bello urged traders to act responsibly and lower prices voluntarily, it is important to note that various factors contribute to high prices, such as import charges, transportation costs, insecurity, and multiple taxation. These factors make it difficult for traders to lower prices without significant losses. Nigeria’s inflation rate recently reached an all-time high, which compounds the problem.

Traders who rely on imported goods also face additional pressures from high import duties and congestion at ports, which increase their expenses and force them to raise prices to maintain profitability. Multiple layers of taxation imposed by different levels of government and the volatility of the Naira against foreign currencies make business even more difficult for traders.

In light of these conditions, West Africa Weekly notes that many traders merely pass on the increased costs they face to consumers. Therefore, the underlying issues should be addressed instead of imposing a strict deadline.