By Prosper Okoye
In its efforts to reduce the high cost of goods in Nigeria, the Federal Competition and Consumer Protection Commission (FCCPC) has announced plans to begin engagements with market leaders and other supply chain stakeholders.
This was disclosed in a statement signed by the agency’s Executive Vice Chairman, Tunji Bello, on Monday.
The FCCPC acknowledged that the current exchange rates could contribute to the increasing prices of goods but emphasized that some supply chain stakeholders, particularly retailers, were exploiting consumers.
As of August 2024, Nigeria’s inflation rate stands at 34.19%, one of the highest among African economies. This significant rise is influenced by factors such as the devaluation of the naira and the removal of the petrol subsidy. Additionally, food inflation has reached 40.87%, reflecting the escalating costs of essential goods like energy, transportation, and basic commodities.
“While it is recognized that the exchange rate has impacted the value of the Naira, it is, however, observed that prices charged are, in most cases, disproportionate for imported products and excessive for locally produced ones.
“This unfair practice is prevalent in the retail segment of the distribution chain where some market associations are engaged in price fixing at the expense of consumers.
“Working with the market leaders, the Commission believes an understanding can be reached on reasonable pricing of products with a view to eschewing undue profiteering at the expense of consumers during these economic challenges.
“Such interaction will be sustained by the Commission to foster a better market culture that allows for traders’ margins without exploiting buyers.
“The Commission’s advocacy for Nigerian consumers in this direction is consistent with the renewed hope agenda of President Bola Tinubu.
“Already, the Commission has mandated the operators of supermarkets to visibly display the prices of products on their shelves to shoppers, ensuring transparency and avoiding situations where consumers only discover the prices after payment at the counter,” the statement read.
