The Federal Competition and Consumers Protection Commission (FCCPC) decided to host this townhall meeting in Lagos as part of a broader initiative to foster a national conversation around the sanity of the marketplace.

Before I continue, let me seize this opportunity to debunk a gross misrepresentation of the position of the Commission at the Abuja edition of the townhall series by a section of the media, particularly some of the online platforms. Contrary to the impression they created, at no time did we say we were giving traders ultimatum to crash prices across the country by fiat. That is quite ridiculous. The Commission would have required an army to enforce that. Certainly, our statutory mandate does not include price control. We are not here to fix prices or dictate to any law-abiding trader or manufacturer how to relate to the market. Rather, ours is to ensure there is no price fixing or gang-up in trade transactions.

As a Commission, we are not acting out of a brainwave. Indeed, we had carried out extensive discreet market survey across the country and our findings were quite disturbing. We identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices. We noticed that the margin in the prices of imported goods are very disproportionate in many cases; and in the case of locally produced goods, excessively inflated.

In some areas, we discovered that some players are engaged in hoarding of grains, to create artificial scarcity, thereby distorting the market, resulting in unduly high prices of such food items.

To be sure, we cannot deny that the removal of fuel subsidy has brought some discomfort, just as we quite recognize that an unfavorable exchange rate has negatively impacted the cost of production in local currency. But nothing justifies selling a blender sold N140,000 in the U.S. for N950,000 in Nigeria, for instance, representing more than 500 percent inflation of the cost.

Perhaps, the case of BUA cement best illustrates how the middlemen collide sometimes to distort the market and make life more miserable for the consumers at a time when people are already facing economic challenges. You will recall that after a meeting with President Bola Tinubu last year, the Chairman of BUA cement, Alhaji Abdul Samad Rabiu, agreed to bring down the price of cement to N3,500 ex depot as his own way of helping to bring succor to Nigerians passing through economic difficulty. But Alhaji Rabiu’s commendable gesture was frustrated by unscrupulous middlemen who bought cement from BUA at N3,500 and ensured that prices remained at N7,000.

In our investigation, we also discovered that some traders form a cartel in the market and put barriers in form of ridiculous membership fees intended to ensure price fixing in the market. Without joining them, they won’t allow anyone to sell goods in the market or provide services.

Such practices are against the law and constitute some of the offenses the Commission is against, ladies and gentlemen. To be clear, price gouging and price fixing are not only unethical, but patently illegal also under the FCCPA. Section 17 of the Act empowers the Commission to eliminate anti-competitive practices, misleading, unfair, deceptive, or unconscionable marketing, trading, and business practices. Sanctions include fine of up to N10m and a jail term for anyone found guilty by the court.

But rather than applying the full weight of the law in the first instance, the Commission is deliberately adopting the option of dialogue with you the stakeholders to collaborate with us to help check unfair pricing in the market.

To galvanize a more efficient process nationwide, I am pleased to announce that Commission is upgrading its consumer engagement portal to make it more inclusive and interactive and in real time. In simple terms, it means that, when fully calibrated, it will be possible for any consumer who feels aggrieved to lodge a complaint and upload the receipt of the transaction as evidence and such complaint will be processed promptly free of charge with a view to ensuring that justice is done without fear or favour.

At our engagement with stakeholders in Abuja two weeks ago we heard their own stories. They listed factors like insecurity, high costs of transportation and extortion on the road by both state and non-state actors as part of the reasons for prevailing high costs of consumer goods. As a government agency, our responsibility is to get feedback to help policymakers.  At Abuja, we heard the stakeholders loud and clear and shall take the message back to  the government.

At this juncture, let me acknowledge and thank the Lagos State Government for a good step already initiated in this direction. According to a media report few days ago, the Lagos State Government said it would henceforth track the movement produce from the farms to the markets with a view to checkmating those in the habit of hijacking the produce and manipulating the prices at the expense of consumers. Having supported farmers with free inputs and processors, the Lagos State Government is, of course, justified to track the produce to the markets to ensure that the prices at which those produces are being sold are reasonable for average Nigerians. We welcome such a step and encourage other states to emulate this to ensure fair pricing for the benefit of Nigerian consumers.

Before I round off, I think it is also important to report that the administration of President Bola Ahmed Tinubu is not unaware of the pains caused by the economic reforms being implemented to reposition our economy. As a responsive and sensitive leader, President Tinubu has taken some extraordinary steps by removing taxes on food items, pharmaceutical products, and public transportation. Such laudable initiatives would however be in vain if the benefits are not passed down to the consumers by way of reduced prices of goods and services in the times ahead.

In Abuja, I had enjoined stakeholders to embrace the spirit of patriotism and cooperation at this challenging moment. Here in Lagos, I am echoing that statement. Please, let us talk to ourselves and say no to the exploitation of one another.

*BEING Excerpts from THE KEYNOTE ADDRESS BY THE EXECUTIVE VICE CHAIRMAN/ CHIEF EXECUTIVE OFFICER (FCCPC), MR. TUNJI BELLO, AT A STAKEHOLDERS MEETING ON EXPLOITATIVE PRICING HOSTED BY THE FCCPC AND HELD IN LAGOS ON WEDNESDAY, SEPTEMBER 11, 2024