‘The Federal Competition and Consumer Protection Commission (FCCPC) does not seek to suppress private enterprises,’ but is determined to regulate the market under its purview in order to protect consumers. This, the Commission said, is being done by ensuring that businesses operate on the principles of fairness, transparency, and accountability in line with its mandate.
The Commission made the clarification in a statement on Tuesday, signed by Ondaje Ijagwu, FCCPC Director of Special Duties and Strategic Communication.
While making reference to the Chairman of BUA Group, Mr. Abdulsamad Rabiu who said that despite BUA Cement’s effort to sell cement at a fair price of N3,500 per bag, the plan was undermined by dealers who inflated prices to as much as N7,000 to N8,000 per bag, the Commission pointed out that ‘when businesses, as illustrated by the cement sector case, engage in practices that harm consumers, the FCCPC will take decisive action.’
The press statement, which was a response to feedback from the Organised Private Sector and other interested parties regarding its recent directive to businesses to stop price gouging, price fixing, and other exploitative practices, added that it appreciates the dialogue while clarifying its position.
While acknowledging the complexities of the current economic environment, including challenges such as foreign exchange fluctuations and fuel subsidy removal, the Commissioned stated that ‘the factors certainly impact pricing, but they do not justify exploitative practices that are anti-consumer,’ adding that the Commission’s proposed actions in the retail sector are targeted and evidence-based, with aim to respond to specific instances where consumers are vulnerable to such exploitation.
The Commission said discoveries made during its market surveillance and a recent disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, underscores the critical need for FCCPC oversight. It made reference to Mr. Rabiu who revealed that despite BUA Cement’s effort to sell cement at a fair price of N3,500 per bag, the plan was undermined by dealers who inflated prices to as much as N7,000 to N8,000 per bag. This situation, the Commission said, exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing. ‘Such practices make it difficult for ethical businesses to thrive,’ is said.
‘Price gouging is an unfair practice that takes advantage of crises or economic hardships to arbitrarily inflate prices, while price fixing occurs when competitors or market associations, without their own products, collude to set prices.’
‘We categorically assert that prices in a competitive marketplace are determined solely by the forces of supply and demand. Price control is entirely outside the scope of our responsibilities. We have never considered, nor will we ever consider, intervening in the market to regulate prices. Any claims to the contrary are baseless and unfounded. Our recent directives are not about controlling prices but are focused on curbing exploitative practices and anti-competitive behaviors that distort the marketplace and harm consumers.’
The Commission pledged its continuous commitment to safeguard consumers from unfair and deceptive practices in line with its mandate, adding that it will ensure robust competition across all sectors.
While saying that promoting competition is essential for economic health, as evidenced in sectors like telecommunications, the statement pointed out that 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.’
The Commission stated: ‘We encourage all businesses to engage in ethical and lawful practices that contribute to a fair and competitive marketplace. 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.’
“We will continue to work collaboratively with all stakeholders; businesses, consumer groups, and other government agencies, to address both the immediate and remote causes of exploitative pricing. Our approach combines enforcement with cooperation, aiming to protect consumers and maintain a healthy competitive environment.’
‘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 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.’
