The Federal Competition and Consumer Protection Commission (FCCPC) has stated that it won’t regulate market prices, despite the controversy surrounding its threat to intervene in the markets over rising commodity prices.
This is contrary to a statement attributed to the FCCPC Executive Vice Chairman, Mr. Tunji Bello, last week, which gave traders and other market stakeholders a month’s notice to stop what he called ‘exploitative pricing’, threatening to crash their prices or face action from the Commission.
The FCCPC affirmed its commitment to enforce laws that undermine fair competition, as well as protecting Nigerian consumers by combating price fixing and other exploitative practices in markets throughout the country.
The Commission, in a statement issued by Ondaje Ijagwu, Director, Special Duties (and Strategic Communication) in Abuja, yesterday said, “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.
“The FCCPC remains committed to a balanced approach that respects the dynamics of a free market while ensuring that consumers are protected from harmful practices.
“We encourage all businesses to engage in ethical and lawful practices that contribute to a fair and competitive market place. The FCCPC does not seek to suppress private enterprise; our 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 has made a commitment to collaborate with all stakeholders, including businesses, consumer groups, and other government agencies, to tackle both the immediate and remote causes of exploitative pricing, adding “Our approach combines enforcement with cooperation, aiming to protect consumers and maintain a healthy competitive environment.”
Businesses have been granted a one-month moratorium by the organization before enforcement starts, which gives them time to adjust their practices and comply with laws meant to protect consumers and encourage fair competition.
It added “The FCCPC stands firm in its commitment to enforcing the Federal Competition and Consumer Protection Act (FCCPA) 2018. We will continue to monitor the marketplace and take action against any business practices that violate the law.”
“Consumers and businesses alike can trust that we will remain vigilant in upholding the principles of fair competition and consumer protection.”
According to the commission, prices in a competitive market are purely determined by supply and demand, and it did not think that price control was outside of its responsibilities.
“We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are baseless. Our recent directives are not about controlling prices but are focused on curbing exploitative practices and anti-competitive behaviours that distort the marketplace and harm consumers .”
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