In what looked like passing the buck, an agency of the Federal Government, the Federal Competition and Consumer Pricing Commission (FCCPC) has stated that “disproportionate pricing of imported goods, mostly among retailers is responsible for inflation in consumer goods in the country”.
In a statement by the FCCPC’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, the commission stated its intention to engage with market leaders to check exploitative pricing across the country.
According to the statement, the commission stated that by collaborating with market leaders, it is confident that a consensus can be reached on fair product pricing to avoid excessive profiteering at the expense of consumers during these economically challenging times.
It stated that “while it is recognized that the exchange rate has impacted the value of the Naira, it is however observed that prices charged are, in most cases, disproportionate for imported products and excessive for locally produced ones.”
“This unfair practice is prevalent in the retail segment of the distribution chain where some market associations are engaged in price fixing at the expense of consumers.” The Commission noted that efforts to protect Nigerian consumers align with President Bola Tinubu’s Renewed Hope agenda.
The Commission has already directed supermarket operators to clearly display product prices on their shelves, ensuring transparency and preventing situations where shoppers only discover prices after making payment and receiving a receipt.
The FCCPC previously issued a strong warning to those involved in the food chain sector, cautioning against unjustified price hikes. The FCCPC highlighted that its monitoring efforts uncovered evidence of conspiracies, price gouging, hoarding, and other unfair practices among participants at the distribution and retail levels.
Abdullahi expressed concern that certain actors in the food chain sector were taking advantage of consumer anxiety to inflate prices, describing these actions as reprehensible, unethical, exploitative, and illegal.
Nigeria is experiencing one of the worst costs of living crisis in a generation with inflation at 34.19% and food inflation at 40.87% in June 2024- the highest in 28 years. The increase in food prices was largely attributed to the depreciation of the naira, conflicts in food-producing regions, and soaring transportation expenses.
The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, highlighted that new inflationary pressures are emerging, extending beyond traditional monetary factors and the impact of exchange rates on inflation.
His comments were revealed in a document issued by the CBN, summarizing the views of the MPC members. Cardoso had also noted that seasonal factors, such as price increases during religious fasting and festive periods, are contributing to the cyclical nature of prices.
