Price control entirely outside the scope of our responsibilities – FCCPC

FCCPC has asserted that its recent directive targets exploitative practices and anti-competitive behaviours, not direct price control.

The Federal Competition and Consumers Protection Commission (FCCPC), on Tuesday clarified that its recent directive on commodity price hike wasn’t aimed at price control rather “focused on curbing exploitative practices and anti-competitive behaviours that distort the marketplace and harm consumers”.

The commission spoke against the backdrop of a call by the Organised Private Sector (OPS) urging it to address economic fundamentals that led to commodities price increase rather than resorting to forcing down the prices of items.

However, in a statement, FCCPC Director, Special Duties and Strategic Communication, Ondaje Ijagwu, said, “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.

“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.

“We recognise the complexities of the current economic environment, including challenges such as foreign exchange fluctuations and fuel subsidy removal.”

He said, “Discoveries made during our market surveillance and a recent disclosure by Abdul Samad Rabiu, Chairman of BUA Cement, underscores the critical need for our oversight. Mr. Rabiu revealed that despite BUA Cement’s effort to sell cement at a fair price of N3,500 per bag, their plan was undermined by dealers who inflated prices to as much as N7,000 to N8,000 per bag.

“This situation exemplifies the kind of exploitative conduct that the FCCPC is committed to addressing. Such practices make it difficult for ethical businesses to thrive.”

Ijagwu 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.”

According to him, price gouging constitutes an unfair practice that takes advantage of crises or economic hardships to inflate prices arbitrarily.

He, therefore, reiterated the commission’s commitment to enforcing the Federal Competition and Consumer Protection Act (FCCPA) 2018 as it affects prices of commodities in the market, adding that any contrary claims were baseless and unfounded.