At various supermarkets and markets within the Federal Capital Territory, the Federal Government recently began carrying out spontaneous enforcement raids to ensure compliance with regulations concerning price display and quantities, with the goal of reducing the overall costs of food items nationwide.
Furthermore, there are plans to conduct surprise inspections at both super and open markets in Lagos, Port Harcourt, Kaduna, and Ibadan in the upcoming weeks to investigate abnormal price hikes and take strong actions against any businesses found to be involved in unfair market practices, such as price manipulation, overpricing, or formation of cartels.
Dr. Adamu Abdullahi, the Executive Secretary of The Federal Competition and Consumer Protection Commission, made these statements during an enforcement operation aimed at eradicating grocery store price exploitation and illegal pricing strategies.
During the operation, which lasted several hours, the FCCPC sealed 4U Supermarket and removed 33 bags of counterfeit Stallion and Caprice rice infested with weevils from one of the supermarket branches situated at 58 Adetokunbo Ademola Crescent, Wuse II.
Prior to this, on Wednesday, the commission had instructed its operatives to heighten monitoring activities in both formal and informal markets to identify businesses practicing unwarranted price mark-ups for necessary enforcement action.
This move was prompted by consumer concerns regarding the escalating costs of goods, contradicting the recent strengthening of the naira.
Food inflation has been a persistent challenge contributing to Nigeria’s headline inflation, which reached 33.2%, with an unprecedented food inflation rate of 40% in March 2024.
This situation was exacerbated by the significant depreciation of the naira against the dollar in January and February, resulting in soaring prices of essential commodities and services, pushing living costs to unprecedented levels.
Despite the government’s commitment to combat racketeering and the anticipation of a stronger naira, a substantial reduction in the prices of essential goods remained elusive.
Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, stated that consumer protection agencies had been directed to ensure that local prices reflect the increasing value of the naira.
Ngelale emphasized the need for continued efforts to curb inflation swiftly and sustainably, underscoring the importance of enforcing regulations to prevent enterprises from taking advantage of fluctuating exchange rates in pricing goods and services.
Assurance was given by the Presidency that the impact of reforms would become more apparent as the government progresses, ensuring a stronger focus on consumer welfare.
Responding to these developments, the FCCPC boss, in an interview with PUNCH Online, expressed deep concern over the supermarket’s practices, highlighting the harm caused to consumers despite the improved naira value and reduced production costs.
He revealed specific instances where a supermarket was found selling rice from companies that had ceased production, and discrepancies in product pricing and labeling.
Necessary sanctions would be imposed on guilty parties after thorough investigations, as stated by Abdullahi.
In a similar vein, the FCCPC had previously sealed Sahad Stores, a supermarket in Abuja, for engaging in misleading pricing practices and lacking transparency in pricing.
Plans are underway to introduce a price tracker to prevent the exploitation of Nigerian consumers by major supermarkets, with upcoming raids scheduled at major open markets in the FCT and subsequent locations to address price hikes by traders through Market Unions and Associations.
Abdullahi further emphasized the crackdown on cartels in compliance with regulations, stressing the need for price adjustments following the naira’s stability.
He also announced the launch of a price tracker system, set to commence the following week, in collaboration with the Bank of Industry to monitor commodity prices across the country and identify unjustified price increases for prompt intervention.
Following the enforcement raid, Yunusa Yusuf, the General Manager of the Supermarket, who took responsibility for the counterfeit rice, pledged to cooperate with FCCPC regulations on consumer rights to prevent future occurrences.