FCCPC to Engage Market Leaders Over Exploitative Food Prices

By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) has vowed to engage market leaders across the country over exploitative food prices, saying some of them use the volatile foreign exchange (FX) situation to engage in unfair practices.

The Executive Vice Chairman/Chief Executive Officer, Mr Olatunji Bello, disclosed this in a statement on Monday, noting that the move complies with Sections 17(l) (s),116 (2),124,125,138 and 155 of its establishment Act 2018.

‘This is to checkmate exploitative pricing of consumer goods in Nigeria.

“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 to eschew undue profiteering at the expense of consumers at a time of economic challenges.

“Such interaction will be sustained by the Commission to foster a better market culture that makes allowance for the trader’s margin without leaving buyers exploited”, he said.

With inflation at a 28-year high of 34.19 per cent, Nigerians are faced with a cost of living crisis that impacts every facet of daily life like food, electricity, and transportation among others.

Nigeria’s food inflation increased to 40.87 per cent in June 2024, according to the National Bureau of Statistics (NBS) leading the Bola Tinubu administration to lift import levies on some food items. Despite this, there has been no effect on the cost of goods.

The July inflation will be released later this week, with further increases expected.