Findings from a thorough investigation conducted by the Federal Competition and Consumer Protection Commission have shed light on the reasons behind the continuous escalation in consumer prices.
Mrs. B.A Adeyinka, the FCCPC Director of Surveillance and Investigation, elaborated on the various issues involved while briefing journalists during a market surveillance operation to enforce pricing at Masaka Markets in Nasarawa State.
She mentioned that the Commission had engaged in extensive discussions with marketing executives and sellers from different sectors.
Despite government attempts to stabilize the currency, prices persist at high levels. Our research indicates a complex range of factors, such as multiple layers of taxation and transportation expenses, that are pushing prices upwards,” she stated.
As part of its compliance campaign, the FCCPC sealed 4U Supermarket in Wuse 2 for violating price and quality standards. Acting CEO of FCCPC, Adamu Abdullahi, addressed journalists at the supermarket, highlighting the ongoing enforcement of pricing regulations in other states.
The investigation revealed that transportation costs accrue at every phase of the supply chain, from farmers transporting their produce to local markets, to sellers moving goods to larger market centers, and finally to retailers distributing products to consumers.
Transportation expenses pose a significant challenge to sellers, with these costs inevitably passed on to consumers. For example, a product formerly priced at N15,000 is now sold at N50,000. This considerable increase is mainly attributed to higher transportation costs, escalation in pesticide expenses, and security apprehensions in specific areas,” Adeyinka explained.
The investigation also underscored the impact of the ‘herdsmen crisis’ on rural farmers and the lack of interventions in these regions.
“Our initial step involves compiling a report on the myriad of taxes affecting the market and offering potential solutions to the government.
“Our goal is to alleviate the market by reducing these taxes, thereby easing the financial burden on both sellers and consumers,” she noted.
The FCCPC intends to engage with market executives to ensure no hindrances exist in bringing goods to the market.
Chief Gimbal Salasi, the executive chairman of the market, emphasized market executives’ efforts to ensure smooth market operations and pricing regulations. He urged the government to assist in constructing quality access roads to facilitate transportation of commodities in and out of the market.
“We strive to ensure optimal market operations. We prioritize security and sanitation. We call on the authorities for support in developing good roads for smooth commodity movement to increase market patronage,” he stated.
However, some traders expressed concerns about the high costs of goods they have to buy and sell, as well as the extortion and double taxation prevailing in the market.