The Federal Competition and Consumer Protection Commission (FCCPC) has said it has evidence that the current high prices of food items in the country were majorly caused by price manipulators.
FCCPC explanation follows reactions generated by the one month deadline given to food items sellers to crash the price of food on the market by its Chief Executive Officer/Executive Vice-Chairman, Olatunji Bello.
In a statement on Saturday, FCCPC explained that its decision was based on information available on the anti-competitive practices of market groups.
Bello accused food sellers and market organizations of fixing prices and working against independent price fixing by food item sellers to manipulate market prices.
The commission noted that it recognized that the removal of fuel subsidy and foreign exchange affected the prices of food items on the market, but regretted that market associations were manipulating the process.
“FCCPC appreciates everyone for your valuable feedback on our recent directive to businesses to cease price gouging, price fixing, and other exploitative practices. We understand your concerns regarding the feasibility of the directive given the current economic challenges, including removal of fuel subsidy and fluctuations in the foreign exchange market.
“The directive issued by the FCCPC is not an attempt at price control or a mandate to crash prices arbitrarily. Our focus is on preventing businesses from engaging in exploitative conduct such as price gouging, price fixing, the creation of barriers to entry, and all other anticompetitive and exploitative behaviours prohibited under the Federal Competition and Consumer Protection Act (FCCPA) 2018.
These practices distort the market and harm consumers, and our commitment is to uphold a marketplace rooted in fairness and accountability by enforcing the provisions of the FCCPA.
“We acknowledge the complexities of the current macroeconomic environment and are actively working with stakeholders, particularly businesses, and consumer groups, including political leaders, to promote fair competition and consumer protection while addressing the broader economic challenges.
“We encourage businesses to comply with the law and consumers to report any instances of exploitative practices.”