Federal Government Vows to Take Strict Measures Against Traders Inflating Commodity Prices

 The Federal Government has pledged to implement stringent regulatory measures against traders who are "unfairly inflating prices" of goods and commodities.

According to the government, despite the recent appreciation of the Naira against the dollar, consumers are still experiencing rising costs without a corresponding decrease in prices of goods and commodities.

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“This situation is unacceptable, and the FCCPC is committed to protecting consumers from exploitation,” said Adamu Abdullahi, the Chief of the Federal Competition and Consumer Protection Commission (FCCPC), in a statement on Wednesday.

He added, “The FCCPC understands the significant financial strain these rising prices are placing on Nigerian households. As a result, the Commission is taking proactive steps to address this issue.

“While the FCCPC cannot directly regulate prices, the Commission will utilise its existing legal framework to enforce fair competition and consumer protection provisions.

“This includes monitoring and investigating unusual price hikes, addressing complaints filed by consumers, and taking action against any businesses found to be engaging in anti-competitive practices such as price-fixing, price gouging or cartel formation.”

The Commission has directed its operatives to intensify monitoring of both formal and informal markets, where businesses may be taking advantage of market conditions to unfairly inflate prices, and ramp up enforcement activities.

“The operatives will be working collaboratively with trade associations, farmer groups, and other stakeholders to identify and remove unnecessary barriers to entry in various sectors, combat price-fixing, and dismantle cartels. This will encourage increased competition, ultimately leading to lower prices for consumers.”

Meanwhile, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated that the Nigerian economy is moving in the right direction as policies of the new administration have started slowing down food inflation.

Edun made the remarks during a virtual appearance on Channels Television’s Business Incorporated programme on Tuesday from Washington DC, where he is attending the IMF-World Bank Spring Meetings.

Despite the recent drop in the food inflation rate reported by the National Bureau of Statistics (NBS), many Nigerians have expressed concerns that the reduction has not been reflected in the cost of basic food items like garri, millet, yam, bread, coupled with energy and housing costs.

Although the naira has appreciated against the dollar in recent weeks, gaining over 40%, from about N1,900/$ to about N1,100/$1 now, inflation rate stood at 33.20% for March 2024, with the interest rate at 24.75%.