FCCPC Identifies Those Causing Increase in Prices of Rice, Yam, Other Food Items, Set to Take Action

• On Monday, FCCPC declared that it is ready to engage with Nigerian stakeholders and industry leaders
• The initiative is being introduced at a time when rising food prices are aggravating Nigerians' experience with inflation
• The FCCPC declared that it plans to work closely with industry leaders to encourage fair pricing practices to address these concerns

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

To combat exploitative pricing practices in the retail sector, the Federal Competition and Consumer Protection Commission (FCCPC) announced on Monday that it will engage with stakeholders and market leaders across Nigeria.

The program was launched when Nigerians were struggling with inflation, which was made worse by rising food costs and ongoing economic difficulties.

The FCCPC's Executive Vice Chairman and Chief Executive Officer, Tunji Bello, observed this in a statement, "We have noticed that prices for consumer goods, especially in the retail sector, are frequently disproportionate."

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According to a Premium Times report, customers face an increased cost burden due to overpriced imported goods, unwarranted price hikes on local products, and market associations implicated in price-fixing schemes.

“While it is recognised 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,” it read.

The solution

The FCCPC stated that it intends to collaborate closely with industry leaders to promote fair pricing practices in order to allay these worries.

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According to the commission, its goals are to prevent unfair consumer burdens and minimize excessive profiteering, especially during hard times.

It stated that this endeavor is in line with President Bola Tinubu's reaffirmed hope agenda, which aims to improve economic stability and consumer protection.

In order to ensure openness, the FCCPC stated that it has previously required supermarkets to prominently display product pricing to customers, guaranteeing that they are aware of expenses prior to making a purchase.

By preventing circumstances when prices are only disclosed at the point of sale, this approach aims to advance more equitable business practices.

Nigeria's annual inflation rate increased in June, hitting 34.19 percent, for the fifth consecutive month. Notably, from June 2023, when it was 25.25 percent, the food inflation rate dramatically increased to 40.87 percent year over year, a 15.62 percentage point increase.

FG reacts to WhatsApp reports

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Legit.ng previously reported that the FCCPC responded to recent reports suggesting that WhatsApp, the popular messaging platform owned by Meta, could exit the Nigerian market over a $220 million fine for alleged data privacy violations.

Reports citing a WhatsApp spokesperson claimed that the fine is too hefty and would make it impossible for WhatsApp to operate in Nigeria or globally.

But defending its decision, in a statement shared on the X, FCCPC described the fine on WhatsApp and its parent company, Meta Platforms Incorporated, as a positive step towards a fairer digital market in Nigeria.

Source: Legit.ng