FCCPC Addresses Market Concerns: “No Plans For Price Regulation”

The Federal Competition and Consumer Protection Commission (FCCPC) has firmly dismissed any claims suggesting it plans to regulate prices within Nigeria’s market. Instead, the commission emphasized that its recent directives are solely focused on curbing exploitative practices and fostering a competitive marketplace.

This clarification was issued in a statement by the FCCPC’s Director of Special Duties and Strategic Communication, Ondaje Ijagwu, following concerns raised by the Organised Private Sector and other stakeholders. These concerns were in response to the commission’s recent directive aimed at halting unethical business practices such as price gouging and price fixing.

The FCCPC made it clear that its role is not to control prices but to ensure fairness in market operations. “Prices in a competitive marketplace are determined by the forces of supply and demand. Price control is entirely outside our scope of responsibilities. We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are unfounded,” the commission stated.

While acknowledging that external factors such as foreign exchange fluctuations and the removal of fuel subsidies have significantly influenced pricing, the FCCPC stressed that these factors do not justify practices that exploit consumers. “These factors certainly impact pricing, but they do not excuse or justify exploitative practices that harm consumers,” the statement added.

To illustrate the need for its intervention, the FCCPC highlighted a recent issue in the cement industry. Abdul Samad Rabiu, Chairman of BUA Cement, revealed that despite efforts by his company to sell cement at a fair price of N3,500 per bag, dealers inflated prices to as much as N7,000 to N8,000 per bag. “This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing,” the commission noted.

Reassuring the business community, the FCCPC reiterated that its actions are not intended to stifle private enterprise but to protect consumers from harmful practices. “Our role is to ensure that the market operates on principles of fairness, transparency, and accountability,” the statement read.

To give businesses sufficient time to adjust their practices, the FCCPC has granted a one-month moratorium before enforcement begins. “We have provided a one-month moratorium before enforcement, allowing businesses time to comply fully with laws aimed at protecting consumers and fostering fair competition,” the commission stated.

As the FCCPC continues its oversight of the retail sector, it remains committed to upholding the principles of fair competition and consumer protection, with a promise of vigilant enforcement of the Federal Competition and Consumer Protection Act of 2018. “We will continue to monitor the marketplace and take action against any business practices that violate the law. Both consumers and businesses can trust that we will remain vigilant in upholding these principles,” the statement concluded.