FCCP ignores criticisms, insists enforcement of its directive to traders to slash prices commences after one-month grace period

The Federal Competition and Consumer Protection Commission (FCCPC) has said the one month moratorium for cartels and other groups operating in the markets to discontinue their activities subsists despite public outcry from business operators in Nigeria who highlighted several complexities involved in running businesses in the country.

The Commission maintained that the one month period is enough for the business operators to adjust their ‘exploitative’ practices and ensure full compliance with laws that are aimed at protecting consumers and fostering fair competition, to avoid unfriendly actions from the Commission.

In a statement released in Abuja, on Tuesday (today, September 3), by the Commission in response to the recent Organized Private Sector (OPS) remarks on retail sector oversight, Ondaje ljagwu, Director, Special Duties & Strategic Communication, FCCPC, who signed the statement, maintained that it’s the mandate of FCCPC to safeguard consumers from unfair and deceptive practices, and to ensure robust competition across all sectors.

“We categorically assert that prices in a competitive marketplace are determined solely by the forces of supply and demand. Price control is entirely outside the scope of our responsibilities. We have never considered, nor will we ever consider, intervening in the market to regulate prices,” the statement read, in part.

“Any claims to the contrary are baseless and unfounded. Our recent directives are not about controlling prices, but are focused on curbing exploitative practices and anti competitive behaviours that distort the marketplace and harm consumers.

“We recognise the complexities of the current economic environment, including challenges such as foreign exchange fluctuations and fuel subsidy removal. These factors certainly impact pricing, but they do not excuse or justify exploitative practices that are anti consumer.

“The Commission’s proposed actions in the retail sector are targeted and evidence based, responding to specific instances where consumers are vulnerable to such exploitation.”

He made reference to a recent disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, which underscored the critical need for the retail sector oversight.

He said: “Mr. Rabiu revealed that despite BUA Cement’s effort to sell cement at a fair price of N3,500 per bag, their plan was undermined by dealers who 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. Such practices make it difficult for ethical businesses to thrive.

“While promoting competition is essential for economic health, as evidenced in sectors like telecommunications, it is equally important to enforce laws against practices that undermine fair competition.”

He assured that the FCCPC remains committed to a balanced approach that respects the dynamics of a free market, while ensuring that consumers are protected from harmful practices.

He encouraged all businesses to engage in ethical and lawful practices that contribute to a fair and competitive marketplace, insisting that the FCCPC does not seek to suppress private enterprise.

“Our role is to ensure that the market operates on principles of fairness, transparency, and accountability. When businesses, as illustrated by the cement sector case, engage in practices that harm consumers, the FCCPC will take decisive action.

“We will continue to work collaboratively with all stakeholders; businesses, consumer groups, and other government agencies, to address both the immediate and remote causes of exploitative pricing. Our approach combines enforcement with cooperation, aiming to protect consumers and maintain a healthy competitive environment,” he added.