by Kawaekeune Jeffrey
The Federal Competition and Consumer Pricing Commission (FCCPC) has identified disproportionate pricing of imported goods, particularly among retailers, as a major contributor to inflation in consumer goods across Nigeria.
In a statement, FCCPC’s Executive Vice Chairman/Chief Executive Officer, Tunji Bello, announced the commission’s intention to engage with market leaders to address exploitative pricing practices nationwide.
The commission believes that by collaborating with market leaders, a consensus can be reached on fair product pricing, preventing excessive profiteering at consumers’ expense during these economically challenging times.
“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,” the statement read.
The FCCPC maintained that it is an unfair practice especially among the retail segment of the distribution chain, where some market associations engage in price fixing at consumers’ expense.
Aligning with President Bola Tinubu’s renewed hope agenda, the Commission said it has already directed supermarket operators to clearly display product prices on their shelves. This measure aims to ensure transparency and prevent situations where shoppers only discover prices after making payment and receiving a receipt.
The FCCPC’s action is coming amid Nigeria’s severe cost of living crisis, with inflation at 34.19% and food inflation at 40.87% in June 2024 – the highest in 28 years. The increase in food costs has been largely attributed to the depreciation of the naira, conflicts in food-producing regions, and soaring transportation expenses.
Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, also recently noted that new inflationary pressures were emerging, extending beyond traditional monetary factors and exchange rate impacts. These include seasonal factors such as price increases during religious fasting and festive periods.
The FCCPC’s focus on retail pricing practices represents a targeted approach to addressing one aspect of the complex inflationary pressures facing Nigerian consumers.
