In an effort to ensure compliance with price display and quantity regulations, the Federal Competition and Consumer Protection Commission conducted an enforcement raid at two supermarkets in the Federal Capital Territory, Abuja.
Dr. Adamu Abdullahi, the Executive Secretary of the Commission, announced that the initiative aimed to address the high cost of food items nationwide, with plans to extend the enforcement to other cities like Lagos, Port Harcourt, Ibadan, Kano, Kaduna, among others, in the coming weeks.
Abdullahi emphasized the importance of unannounced inspections at both stores and open markets across different states as part of efforts to curb abnormal price surges that have not corresponded to the recent appreciation of the naira.
The FCCPC boss also mentioned intentions to conduct surprise checks at major open markets in the FCT on Friday to address unwarranted price hikes by traders.
During the operation that lasted several hours, the FCCPC sealed 4U Supermarket and removed 33 bags of suspected fake stallion and caprice rice infested with weevils from one of the store’s branches located at 58 Adetokunbo Ademola Crescent, Wuse II.
Earlier on the same day, the commission instructed its enforcement agents to intensify monitoring of both formal and informal markets to identify businesses involved in unjustifiable price inflation for necessary enforcement actions.
The decision to ramp up monitoring was prompted by consumer concerns regarding escalating prices of goods despite the naira’s appreciation.
Food inflation has been a persistent issue contributing to Nigeria’s headline inflation rate of 33.2 per cent, with food inflation hitting an alarming 40 per cent in March 2024.
The depreciation of the naira against the dollar in January and February further exacerbated the situation, leading to inflated prices of essential goods and services, pushing the cost of living to unprecedented levels.
Despite the government’s commitment to combatting fraudulent practices, there has been minimal reduction in prices of essential items, prompting the call for stricter enforcement of price regulations to reflect the naira’s strength.
In a statement, the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, revealed that President Bola Tinubu directed consumer protection agencies to ensure local prices align with the naira’s value appreciation.
Ngelale emphasized the need for sustained efforts to combat inflation and vowed that consumer protection agencies would enforce fair pricing practices across all sectors.
The Presidency reassured Nigerians of better days ahead, promising that the benefits of reforms would become increasingly evident as the administration progresses.
Responding to the situation, Abdullahi, head of FCCPC, stressed that the deceptive practices of supermarkets harm consumers despite the stronger naira and reduced production costs.
He noted that 4U supermarket was found selling rice purportedly from Stallion and Caprice, although these companies ceased rice production in August 2022.
Abdullahi also highlighted discrepancies between shelf prices and actual selling prices, along with the absence of price tags on some products, indicating that appropriate sanctions would follow thorough investigations.
He pledged to take decisive action against companies engaging in unfair practices such as price manipulation, unjustified price hikes, or cartel formation.
On a previous occasion, FCCPC had shut down Sahad Stores in Abuja’s Garki area due to alleged misleading pricing practices and lack of pricing transparency.
Regarding the ongoing operations, Abdullahi stated, “Our aim is to ensure that market prices align with displayed prices. There is a concerning trend of misrepresented pricing, especially in markets around major cities.
“Despite previous interventions and store closures, some supermarkets persist in these practices. Customers encounter discrepancies between displayed and actual prices during checkout.
“This deception is unacceptable as it exploits consumers, with some items lacking price tags altogether. We are here to put an end to these practices.
“Additionally, we discovered that Stallion Group, presumed defunct for a long time, was still active in the market. Some individuals are packaging local rice as Stallion or Caprice brands, deceiving consumers. This fraudulent behavior will not be tolerated.
“We are confiscating all the rice for investigation, and 4U Supermarket will be held accountable for their sourcing. Both producers and packagers will face appropriate sanctions as per FCCPC regulations for any violations detected.”
It’s important to be aware of the provisions of the FCCPC Act, 2018, particularly Section 69, which specifies the penalties for violating its rules. According to the Act, individuals could face fines up to N50m for violations, while corporate bodies could face fines up to 10% of their previous year’s turnover.
Due to staffing constraints, the FCCPC will focus its enforcement efforts on select stores and markets. This targeted approach aims to ensure compliance with regulations.
The commission aims to eliminate cartels and reduce prices of goods in the formal and informal markets. Efforts will be extended to various cities like Abuja, Port-Harcourt, Lagos, Kano, Ibadan, and Kaduna to enforce market regulations.
FCCPC plans to introduce a price tracker to monitor price fluctuations in the market. This measure will help in identifying unjustified price hikes and prevent consumer exploitation.
After a recent raid, the General Manager of 4U Supermarket pledged cooperation with FCCPC and vowed to reveal the sources of counterfeit products.
However, some individuals like Gabriel Idahosa from the Lagos Chamber of Commerce and Industry criticized the FCCPC’s actions, labeling them as an overreach. They emphasized that government intervention in price regulation could disrupt market dynamics.
Similarly, Muda Yusuf from the Centre for the Promotion of Private Enterprise and Ikenna Nwosu from the Nigerian Economic Summit Group questioned the FCCPC’s authority to enforce pricing regulations through market raids.