"Substantial Fines and Imprisonment": FG Gives Traders One-month Deadline to Crash Food Prices
- The FCCPC is set to take action against traders and other market participants who engage in the exploitation of customers
- The commission stated that unethical practices, including price fixing, are jeopardizing the stability of the economy
- It, therefore, gave the traders a one-month ultimatum to adjust the prices of their commodities or face sanctions
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Federal Competition and Consumer Protection Commission (FCCPC) has granted a one-month grace period for traders and other market participants engaged in exploitative pricing to lower the costs of goods.
Mr. Tunji Bello, the newly appointed Executive Vice Chairman of the FCCPC, announced this during a one-day stakeholders’ meeting on exploitative pricing held on Thursday in Abuja.
Source: UGC
According to Vanguard, Bello stated that the Commission will commence enforcement actions after the grace period expires.
He explained that the meeting aimed to tackle the rising trend of excessive pricing of consumer goods and services, as well as the unethical practices of market associations.
The commission had earlier claimed that market cartels were partly responsible for the nation's rising food prices.
It then announced plans to tackle unwarranted price hikes by traders and retailers in markets and supermarkets.
Traders get one-month moratorium to reduce prices
During the meeting, Bello highlighted an instance where a fruit blender, known as Ninja, was being sold for 89 dollars (N140,000.00) at a well-known supermarket in Texas, but the same product was priced at N944,999.00 in a Victoria Island, Lagos supermarket.
He questioned the justification for such a significant price disparity compared to the Texas store.
Bello further remarked that such unethical practices, including price fixing, are jeopardizing the stability of the economy.
He stated that, under Section 155, individuals or corporate entities found guilty of violations could face harsh penalties, including hefty fines and imprisonment, as determined by the court.
He said:
”This is intended to deter all parties involved in such illicit activities.
”However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation.
”It is in this spirit that we are giving a moratorium of one month (September) before the Commission will start firm enforcement."
Bello acknowledged that the government is aware of many of the issues highlighted by market stakeholders but also pointed out that there are instances where traders collude to take advantage of customers.
Some of the stakeholders who spoke during the engagement cited factors such as high transportation costs, insecurity, and multiple taxes as reasons for the persistent rise in the prices of goods and services.
FCCPC condemns increase in pure water price
In related news, Legit.ng reported that the FCCPC had condemned the increase in the price of sachet water, better known as pure water, across the country.
Adamu Abdullahi, the commission's chief, stated this while speaking in Abuja at an event commemorating the 2024 World Consumer Rights Day.
The price of sachet water increased to sell for N300-N500 a bag, depending on the location, from N200, which it initially sold.
The Association of Table Water Producers (ATWAP) in Enugu said members at an emergency meeting agreed to hike the price.
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Source: Legit.ng
