The Federal Competition and Consumer Protection Commission has blamed the distribution sector, including wholesalers and retailers, for the spike in the prices of foodstuffs and other commodities.
The South-South Zonal Coordinator of FCCPC, Uchegbu Chukwuma, disclosed this shortly after taking newsmen on a survey of the popular Oil Mill Market in Port Harcourt.
Chukwuma said that the commission’s position followed market inquiries in some states within the zone, saying that its surveillance efforts suggest participants in the food chain and distribution sector such as wholesalers and retailers, are allegedly engaged in conspiracy, price gouging, hoarding, and other unfair practices to restrict competition in the market.
He further said such illicit acts restrict the supply of food and manipulate and indiscriminately inflate the price of food, pointing out that such practices, which he termed “obnoxious, unscrupulous, and exploitative,” are illegal under the FCCPA.
The Commission, Chukwuma said, has been engaging in fact-finding interactions with traders’ associations and marketers to ascertain the factors responsible for the continuous hike in food prices.
The South-South Zonal Coordinator of the FCCPC noted that the fact-finding inquiry was an investigative mission to gather information directly from the sources and stakeholders in major markets, particularly executives, market unions, sellers, and consumers.
Chukwuma added that the commission’s priority remains to unlock the markets and address key consumer protection and competition issues affecting the prices of commodities in the food sector.
He stated, “FCCPC’s surveillance efforts suggest participants in the food chain and distribution sector, including wholesalers and retailers, are allegedly engaged in conspiracy, price gouging, hoarding and other unfair tactics to restrict or distort competition in the market, restrict the supply of food, manipulate and inflate the price of food indiscriminately.
“These obnoxious, unscrupulous, exploitative practices are illegal under the FCCPA.
“Following this exercise, the commission would develop a concise report of its inquiry and make recommendations to the government in line with Section 17(b) of the FCCPA and initiate broad-based policies and review economic activities in Nigeria to identify and address anti-competitive, anti-consumer protection, and restrictive practices to make markets more competitive while also ensuring fair pricing for consumers.
“As part of our mandate as enshrined in FCCPA section 17B, part of what we do is to advise the Federal Government on policies, especially economic policies, so what we are doing today is what we call a market survey to find out what has been causing this continuous price increase of goods and services in the market places.”
Chukwuma added, “We know that recently the dollar went up and also drove the price of goods and services in the marketplace, but the government in its wisdom has done everything it can to reduce the rate of dollars against naira, but we have not seen a commensurate reduction in the price of goods and services.
“People are saying that whenever prices go up it cannot come down again, but we are asking what drove the cost of goods and services and what is sustaining it, so that is why we have decided to take this exercise with the market leaders, the sellers, and also the buyers.
“So when we collate this information we are gathering we use it to advise the government on policies and what to do because the total essence of government is for welfare and the security of the citizens.
“So I know that this current government is a government that listens if sound arguments and policies are presented. I am sure that they will be willing to buy into it so that our consumers will smile again.’’
“We have found out that there is a lot of money that people pay from point of purchase. Almost all the people we spoke with said the same from Benue State to this place. Each truck coming here pays not less than N250,000 as illegal fees enroute their respective destinations.”
South-South PUNCH correspondent, who was part of the trip, explained that some traders in the market expressed their plight, saying the cost of transportation and multiple checkpoints by policemen, who demand tips on the road are responsible for the price hike.
One of the traders stated, “If only petrol prices can come down and these policemen allow us to move freely with our goods, we will sell according to the way we buy the goods.”
The PUNCH
