Nigerian Govt Orders Traders To Slash Prices Within 30 Days
The Nigerian government, via the Federal Competition and Consumer Protection Commission (FCCPC), has issued a one-month deadline for traders to reduce prices, effective September 2024.
The FCCPC Vice Chairman, Tunji Bello announced this during a stakeholders’ meeting on exploitative pricing in Abuja, revealing that the commission had identified numerous instances of price gouging among Nigerian traders.
He cited an example where a supermarket in Lagos marked up the price of a Ninja Fruit Blender by 500%, selling it for ₦944,999.00, despite it costing ₦140,000 in Texas, USA.
Bello warned traders that practices such as price fixing and gouging are destabilizing the economy. The commission plans to enforce penalties, including fines and imprisonment, against violators under Section 155 after the September 2024 grace period.
He urged stakeholders to cooperate, emphasizing that the current approach is not punitive.
“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. 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, ” he said.
During the meeting, traders attributed the high prices to factors such as importation costs, transportation expenses, and other variables.
The Chairman of the National Association of Nigerian Traders (FCT Chapter), Mr Ifeanyi Okonkwo highlighted port charges as a significant contributor to the price increases and requested the establishment of a task force to include their association in the enforcement efforts.
This directive comes as Nigerians continue to struggle with the rising cost of living, with July’s inflation rates hitting 33.40% for headline inflation and 39.53% for food inflation.