FCCPC appeals to stakeholders to curb price fixing, unethical practices

The Federal Competition and Consumer Protection Commission (FCCPC) has called on stakeholders in the production and distribution sectors to join efforts in combating price fixing and other unethical business practices. This appeal was made by FCCPC Chairman, Mr. Tunji Bello, during a town hall meeting held in Lagos on Wednesday.

Addressing a packed hall of industry leaders, market association heads, transport operators, and service providers, Bello highlighted the commission’s concerns over exploitative pricing practices. The one-day stakeholders’ engagement on “Exploitative Pricing,” held in Oregun, Lagos, aimed to create a dialogue on curbing such practices.

Bello stated that the meeting was prompted by findings from a recent nationwide survey conducted by the FCCPC, which uncovered worrying trends.

“We discovered that some traders form cartels in the markets, imposing barriers such as exorbitant membership fees designed to enforce price fixing. Those who refuse to join these cartels are not allowed to trade or offer services in the market. Such practices are illegal and are among the offenses the Commission is committed to eliminating,” he said.

Bello further explained that the purpose of the town hall meeting was to engage stakeholders across the production, retail, and service sectors, giving them a platform to share their experiences and work towards a consensus that benefits everyone.

The Lagos meeting follows a similar engagement held in Abuja two weeks earlier, reflecting the FCCPC’s broader strategy to address these concerns nationwide.

The FCCPC’s initiative comes at a time when Nigerians are grappling with sharp increases in food and transportation prices. While acknowledging the impact of exchange rate fluctuations and the recent rise in petrol prices, Bello criticized the disproportionate price hikes in basic goods, attributing them to “cartels” exploiting consumers.

Although the FCCPC has the legal authority to impose fines and penalties under Section 17 of the FCCPC Act, which includes a fine of up to N10 million and a three-year jail term for offenders, Bello emphasized that the commission is currently focused on dialogue to achieve a lasting solution.

To improve engagement, the FCCPC has upgraded its online portal, allowing consumers to lodge complaints more easily, ensuring prompt resolutions.

On the broader economic front, Bello noted that recent measures by the Tinubu administration, such as the removal of taxes on imported food items, pharmaceuticals, and transportation, are designed to cushion the impact of economic reforms.

He urged traders to ensure these benefits are passed on to consumers through fair pricing. “Such measures would be in vain if the benefits are not reflected in reduced prices for consumers,” Bello remarked.

Folasade Tinubu-Ojo, the Iya Oloja General of Nigeria, echoed Bello’s sentiments, urging traders to refrain from exploitative pricing and support the government’s efforts. “We need to assist the government by being considerate in our pricing and avoiding the temptation of abnormal profits,” she said.

Also speaking at the event, Mr. Afolabi Sholebo, General Manager of the Lagos State Consumer Protection Agency (LASCOPA), questioned the rationale behind punitive pricing practices and called for greater accountability among traders.