- Regulator Opens Investigation
THE Federal Competition and Consumer Protection Commission (FCCPC) has criticized dealers for inflating the price of BUA Cement to between N7,000 and N8,000 per bag, compared to the company’s recommended price of N3,500.
“Discoveries made during our market surveillance and a recent disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, underscore the critical need of oversight. Rabiu revealed that despite BUA Cement’s effort to sell cement at a fair price of N3,500 per bag, their plan is being undermined by dealers who inflate prices to as much as N7,000 to N8,000 per bag”, the FCCPC disclosed in a statement yesterday.
It then responded to remarks by the Organized Private Sector (OPS) that it is out to fix prices. The newly appointed Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, gave an instance with a fruit blending machine, priced at $89 (N140,000) in a popular supermarket in Texas, USA but being sold for N944,999 in a supermarket located in Victoria Island, Lagos.
Describing it as unwholesome practices, Bello said such acts are threatening the stability of the Nigerian economy. “Under Section 155, violators, whether individuals or corporate entities face severe penalties, including substantial fines and imprisonment if found guilty by the court.
“This is intended to deter all parties involved in such illicit activities. However, our approach today is not punitive. I, therefore, call on all stakeholders to embrace the spirit of patriotism and cooperation. It is in this spirit that we are giving a moratorium of one month before the Commission will start firm enforcement,” he said, assuring that the Commission would begin enforcement actions once the moratorium period ends.
The Commission also reported that it acknowledged concerns regarding the feasibility of the directive, given the current economic challenges, including the removal of fuel subsidies and fluctuations in the foreign exchange market. “The directive issued by the FCCPC is not an attempt at price control or a mandate to crash prices arbitrarily.”
The FCCPC in reply to the OPS, said its mandate is to safeguard consumers from unfair and deceptive practices and to ensure robust competition across all sectors, not price control as alleged in certain quarters.
“Our recent directives are not about controlling prices but are focused on curbing exploitative practices and anti-competitive behaviours that distort the market place and harm consumers”, the statement partly read.
“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,” the statement added.” The FCCPC stated that 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.
It emphasized that it does not seek to suppress private enterprise; its 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,” the FCCPC assured, adding, “We have granted a one-month moratorium before enforcement begins, providing businesses with the necessary time to adjust their practices and ensure full compliance with laws aimed at protecting consumers and fostering fair competition.”
The FCCPC is a Federal Government regulatory agency statutorily empowered to provide speedy redress to consumer complaints, among other functions.
