Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has reaffirmed its commitment to enforcing the Federal Competition and Consumer Protection Act (FCCPA) 2018 to combat price gouging and price fixing in Nigeria.
Ondaje Ijagwu, the Director of Special Duties and Strategic Communication at FCCPC, expressed appreciation for feedback from the Organised Private Sector and stakeholders regarding recent directives to businesses to halt exploitative pricing practices.
Ijagwu explained that price gouging, an unethical practice that capitalises on crises or economic difficulties to inflate prices arbitrarily, and price fixing, where competitors collude to set prices, are both harmful to consumers. He emphasised that the FCCPC’s mandate is to protect consumers from unfair practices and to ensure healthy competition across all sectors.
Acknowledging the current economic challenges, including foreign exchange fluctuations and the removal of fuel subsidies, Ijagwu noted that while these factors impact pricing, they do not justify exploitative behaviour that harms consumers.
The FCCPC’s actions in the retail sector are based on evidence, with specific measures aimed at addressing situations where consumers are most vulnerable. Ijagwu highlighted recent market surveillance findings and a disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, who revealed that despite efforts to sell cement at a fair price of N3,500 per bag, dealers inflated prices to N7,000 or even N8,000 per bag.
Ijagwu added that while promoting competition is vital for economic growth, it is equally important to enforce laws against practices that distort the market.
The FCCPC remains committed to balancing free market dynamics with robust consumer protection. The commission continues to encourage businesses to adhere to ethical and lawful practices that foster a fair and competitive marketplace.