The Federal Competition and Consumer Protection Commission (FCCPC) has confirmed that it has no intention of regulating prices in the Nigerian market, following concerns raised by the Organised Private Sector and other stakeholders. The FCCPC’s spokesman, Ondaje Ijagwu, issued a statement on Tuesday clarifying that the commission’s recent directives are focused solely on curbing exploitative practices and ensuring a fair competitive marketplace.
Ijagwu stressed that the FCCPC’s role is to maintain market fairness rather than control prices, emphasizing that prices in a competitive market are determined by supply and demand forces. “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,” the statement read.
The clarification comes in response to concerns regarding the FCCPC’s directive to businesses to cease practices such as price gouging and price fixing. Ijagwu reiterated that while the commission is vigilant against anti-consumer practices, it has no plans to intervene directly in market pricing.
The FCCPC acknowledged that external factors, including foreign exchange fluctuations and the removal of fuel subsidies, have impacted pricing across various sectors. However, the commission emphasized that these factors do not justify exploitative behavior that takes advantage of consumers.
To illustrate the need for intervention, the FCCPC cited a recent example from the cement industry, where prices were significantly inflated by dealers despite efforts by manufacturers to keep them reasonable. “Abdul Samad Rabiu, Chairman of BUA Cement, disclosed 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 statement noted.
The commission reassured the business community that its actions are not intended to stifle private enterprise but to protect consumers from unfair practices that could harm the market and consumer welfare.
