The Federal Competition and Consumer Protection Commission has received a warning from the Center for the Promotion of Private Enterprise about what it refers to as the “intimidation” of Nigerian retailers.
The CPPE, led by Dr. Muda Yusuf, the Director/CEO, released a statement on Sunday in which the organization expressed concerns about the recent actions of the FCCPC. The organization feels that the organization is approaching price control too closely instead of concentrating on its primary responsibility of safeguarding the rights of consumers.
Rather than fulfilling its mandate as a consumer protection organization, Yusuf contended that the FCCPC seems to be evolving into a “price control agency.”
“The disproportionate focus of the commission on the retail segment of the economy and pricing issues underscores this assertion,” he said.
He emphasized that direct price control at the retail level should not be a part of consumer protection, and that the FCCPC’s recent threats against traders, market leaders, and supermarket owners are misguided.
The retail industry, which has millions of participants, is one of the least susceptible to price gouging, claims the CPPE.
“The truth is that the retail segment of the economy is the least vulnerable to price gouging or consumer exploitation on a sustainable basis, contrary to the thinking of the commission,” Yusuf stated.
He went on to say that the retail industry has many participants, which creates a competitive environment that makes it difficult for exploitation to persist.
The FCCPC is “fighting the symptoms rather than dealing with the causes of the current inflationary pressure in the economy,” which worries the CPPE.
Yusuf emphasized that the FCCPC is not in charge of controlling inflation; rather, it is the duty of the fiscal and monetary authorities.
“The fiscal and monetary authorities are statutorily responsible for macroeconomic policy issues and are better placed to deal with the challenge of high prices,” he added.
Yusuf highlighted that the best way to protect consumers from exploitation is to promote competition across sectors, as seen in the telecoms industry.
“The emphasis should not be on pricing but on deepening the culture and practice of competition and a level playing field for all investors,” he noted.
He warned that the FCCPC approach could lead to “market suppression and private enterprise repression,” which would harm investor confidence in the Nigerian economy.
The FCCPC’s plan to impose price regulation by traveling through the nation’s markets was also criticized by the CPPE.
Yusuf called this strategy “unsustainable” and asked the commission to concentrate on the core causes of inflation, which include depreciating exchange rates, high energy costs, and logistical difficulties.
“The dynamics of pricing and prices in an economy are much more complex and fundamental,” he emphasized, calling for a thorough comprehension that goes beyond passing comparisons.
In his statement, Yusuf urged the FCCPC to stop using intimidating retailers and instead work with other government agencies to address the underlying causes of inflation.
He also identified industries, including financial services, health, energy, and aviation, where he believes there is a higher prevalence of violations of consumer rights.
“The commission should work in collaboration with the other agencies of government to tackle the fundamental causes of inflation in the economy. The focus should be on causative factors driving prices, not the symptoms,” he said.
