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Economic Issues > Blog > Uncategorized > FCCPC Engages Market Leaders to Curb Exploitative Pricing
Uncategorized

FCCPC Engages Market Leaders to Curb Exploitative Pricing

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By Reporter August 14, 2024
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FCCPC Engages Market Leaders to Curb Exploitative Pricing
By Patience Ikpeme

 

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In a decisive move to curb the rising exploitation of consumers through unfair pricing practices, the Federal Competition and Consumer Protection Commission (FCCPC) has initiated plans to engage leaders in the supply and distribution chain of consumer goods across Nigeria. The initiative, which was confirmed by the Commission’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, is part of a broader strategy to protect consumers during the ongoing economic challenges.

According to a statement issued by Bello on Monday, the FCCPC’s engagement with market leaders and other key stakeholders aims to foster a more transparent and fair pricing system, particularly in the retail segment. This action follows growing concerns over the disproportionate pricing of both imported and locally produced goods, which has significantly burdened consumers.

The FCCPC has already directed supermarkets and other retail outlets to display the prices of products clearly on their shelves. This directive is intended to eliminate the “ambush” situations where consumers only discover the cost of items after payment, preventing potential manipulations at the point of sale.

Bello acknowledged the impact of the fluctuating exchange rate on the value of the Naira but emphasized that many of the prices charged, especially for imported goods, are often excessive. “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,” he stated.

The FCCPC also pointed to instances of price fixing among certain market associations, which exacerbate the issue of exploitative pricing. This practice, according to Bello, is particularly rampant in the retail sector, where market associations collude to set prices, leaving consumers with little choice but to pay inflated rates.

The Commission’s strategy involves continuous dialogue with market leaders to reach a consensus on reasonable pricing practices. By collaborating with these stakeholders, the FCCPC hopes to cultivate a market culture that allows traders to make a fair profit without exploiting consumers. This initiative is not just a temporary measure but part of an ongoing effort to ensure fair play in the market, especially during these economically challenging times.

Bello further noted that this consumer protection drive aligns with the broader “Renewed Hope” agenda of President Bola Tinubu’s administration, which seeks to enhance the welfare of Nigerians by ensuring that they are not unduly burdened by market practices. The FCCPC’s actions reflect the government’s commitment to safeguarding consumer rights and promoting economic stability.

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As the FCCPC continues its advocacy, Nigerian consumers can expect more robust interventions aimed at preventing exploitative pricing and ensuring that the market operates in a manner that is both fair and transparent. The Commission’s efforts to engage with supply chain leaders underscore its dedication to creating a more equitable market environment for all Nigerians.

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Reporter August 14, 2024 August 14, 2024
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