The federal government has given a one-month moratorium to traders and market associations involved in fixing exploitative prices on goods and services in the country to crash the prices.
The Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Mr Tunji Bello, gave this directive in Abuja yesterday at a stakeholders’ engagement on exploitative pricing.
He vowed that the commission would begin enforcement after the moratorium.
This is amidst concerns being expressed by citizens across Nigeria have over the rising prices of food items.
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Recently, youths across the country staged a 10-day protest against economic hardship in the land.
On Tuesday, the Food and Agriculture Organisation (FAO), in its 2024 Harmonised Report published in collaboration with other development partners including GIZ, said over 31.8 million Nigerians were suffering from acute food insecurity.
The report said that the hike in food prices triggered by the removal of petrol subsidy as well as the escalating insecurity had further placed millions of Nigerians in a precarious situation.
Speaking in Abuja yesterday, the FCCPC boss said the meeting was to address the unreasonable pricing of consumer goods and services and the unwholesome practice of market associations. He said this was also to underscore the gravity of the situation and urgency of the need to work together to check “the unwholesome development”.
According to him, the differential between imported goods and what Nigerians are purchasing them is too wide.
“The commission found that a fruit blender known as Ninja was being sold at a popular supermarket in Texas for 89 dollars (N140,000.00) but the same product was displayed for N944,999.00 in a supermarket in Victoria Island, Lagos.
“Interestingly, when our undercover officer visited the same supermarket two weeks earlier, this same blender was on display with the price tag of N750, 000. The question then arises: what is the basis for this arbitrary hike in the price of the blender compared to the United States? What business principle can justify this level of profiteering?” Bello asked.
He further stated: “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.
“The FCCPC has the will and the capacity to invoke the full weight of the law against those found culpable of exploiting consumers for undue profit. Under Section 155, 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 said.
Bello said the government was aware of most of the problems raised by the market stakeholders and was working on addressing them.
Address high transportation cost, multiple taxation, insecurity–Traders, experts
Some of the market stakeholders, who spoke during the meeting, charged the federal government to address high cost of transportation, insecurity and multiple taxation which, according to them, are responsible for the continuous increase in prices of goods and services.
Mr. Ifeanyi Okonkwo, Chairman, National Association of Nigerian Traders in the Federal Capital Territory (FCT), said charges on imported goods at the ports also contribute to the hikes in prices.
Okonkwo appealed to the commission to set up a taskforce and involve the association in its enforcement.
Mr. Emmanuel Odugwu from Kugbo Spare Parts Market, Abuja, said: “The initial cost of transportation of a trailer load of tyres from Lagos to Abuja was N450,000, but now, it costs over one million naira to transport same”.
Ikenna Ubaka, who spoke on behalf of supermarket owners in Abuja, cited the high interest rate, rent increment and hike in prices by distribution/supply chains as reasons for the high cost of goods.
Experts speak
Speaking to Daily Trust on the telephone yesterday, a development expert, Kunle Daramola, said only a conducive environment can guarantee reduction in food prices.
He said: “Although the federal government has a point on cartels fixing prices, the only way, however, for prices to come down is to address the issues causing such.
“For instance, high cost of transport occasioned by removal of fuel subsidy has not been addressed and the CNG buses to be rolled out to cushion the effects are not here yet.
“Secondly, insecurity has made farming difficult for farmers, and thirdly the government has been imposing one form of tax to another.
“Therefore, nothing can happen in terms of food prices if government can’t address the critical issues”, Mr. Daramola said.
A trade expert with the Abuja Chamber of Commerce and Industry, Abdulkareem Isa, in an interview with Daily Trust, said: “We cannot expect traders to crash prices when their businesses are also at risk of collapsing as a result of policies initiated by government overtime.
“Therefore, the government should come to the table with these traders to set up monitoring mechanisms and ensure that they fix fair prices to consumers”, he said.
Catholic bishops seek subsidies, loans for farmers
The Catholic Bishops’ Conference of Nigeria (CBCN), in a communique issued yesterday at the end of its week-long second plenary meeting held in Auchi Diocese, Edo State, called on the federal government to support farmers with subsidies, soft loans, modern technology and improved seedlings in order to resolve the rising food prices and hardship in the country.
The bishops said that such measure should also involve supporting small and medium-sized enterprises (SMEs) “struggling to add value to raw local food products through processing, preservation and packaging technology.”
They said Nigerians are currently groaning under the yoke of hardship fueled by high electricity tariffs, high cost of petroleum products, transportation and medicare and general lack of basic infrastructure.
They said this situation had been heightened by the grave threat of food insecurity and malnutrition due to increasing cost of basic food items.
“We learn from experts that food insecurity and hunger in Nigeria are caused, among other factors, by persistent insecurity from terrorists, bandits, kidnappers and herdsmen that has disrupted agricultural activities and livelihoods in many parts of the country.
“We recognise the efforts of governments to deal with this problem such as declaration of state of emergency on food insecurity, importation of food, cash transfer scheme and the distribution of palliatives to the most vulnerable.
“Nevertheless, it is sad to observe that, in spite of these measures, the prices of food items have continued to surge.
“We demand that governments put in place policies, programmes and initiatives that would address the multi-faceted factors that adversely affect food security with a good action plan for implementation such as provision of safety and security to farmers and their crops across the country.
“We encourage families and individuals to embark on farming and call on government to ensure the security of farmers and their crops, offer incentives to private-sector agribusinesses, and take urgent and decisive steps to achieve food self-sufficiency in our nation,” they said.
The bishops noted that while government officials keep calling for patience and sacrifice, their call does not fall well on the rest of the citizens who continue to suffer hunger and dehumanising poverty, while those in power live affluent lifestyles, with no visible effort at reducing the cost of governance.
They also called for the immediate and unconditional release of those detained by the government over the #EndBadGovernance protest.
“The recent protest by a cross-section of the people was aimed at openly expressing their distress and frustration in a nation endowed with rich human and natural resources, yet unable to provide the basic needs of its citizens,” the bishops said.
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