Nigeria has a record hike in inflation of goods and services despite the Naira being the best performing currency.
This is recorded by Goldman Sachs Group and the National Bureau Statistics (NBS) recent data showing an increase in the inflation rate at 33.20% in March.
It was relatively put at 31.70% in February, thus making consumers grapple with the soaring cost of living with this escalating concern.
The call for a price control board is intensifying to serve in regulation in the stabilization of prices and create easy access to essential commodities. Ogbodo Ozioma Favour reports
Market Survey of Prices of Essential Commodities
A market survey conducted by African Health Report (AHR) in mid March at Airport Road, Abuja on the recent prices of essential goods showed that a mudu of sugar was sold at N3100, a crate of eggs was sold at N3600, a mudu of yellow garri was sold at N900 and a bag of pure water at N600 which is a widely consumed source of clean drinking water especially for mid and low classes Nigerians.
A recent survey conducted by African Health Report on Saturday at Garik old market showed that prices of these essential commodities are still relatively high. A bag of water currently sold at N500 and a mudu of yellow garri is sold at N1500 likewise a mudu of foreign rice is sold at N2800 while a basket of fresh tomatoes is currently sold at N5000, a crate of eggs is sold at N3500 while a mudu of sugar is sold at N3500 and a loaf of easy bite bread is sold at N1600.
The FCCPC
The Federal Competition and Consumer Protection Commission (FCCPC) was established by Act no 66 of 1992 which commenced operations in 1999 under the Federal Ministry of Industry and Investment (FMITI) recently, the active has been seen actively enforcing and addressing the prices of goods in supermarket and malls in Abuja.
Dr. Adamu Abdullahi, the acting Executive Vice Chairman of the FCCPC confirmed in a statement in April, that the agency will conduct check out of prices in both informal and formal markets across Nigeria to eliminate unfair trade practices such as price gouging, price fixing, and formation of cartels.
Price Control Agency Springs into Action
The Agency recently released an article ‘Saving Nigerian from their Nigerianness’ confirming that the mounting concerns over skyrocketing prices of goods in Nigeria has geared the reactivation of the FCCPC to stabilize prices and safeguard consumers purchasing powering and these are seen in its recent operations.
For example, In April 24th at Garik Modern Market in Abuja, a targeted operation discovered that the weight scales were deceptive and the quantities in a 25kg or 50kg of rice were much less than stated on the bags.
In another enforcement operation at 4U Supermarket in Abuja, it was discovered that there were discrepancies between displayed prices and checkout prices in the outlet and some of their food items were also infested by pests, which they were still selling to the public. About 97 bags of Rice made by Stallion and Caprice, which had not been produced in the country since 2018 were discovered and it was evacuated by the commission”.
Another enforcement drive by the commission at the Woji area in Port-Harcourt revealed that the supermarkets were selling under-weight and rebagged rice.
Further, A recent video was published on X stating how Chinese supermarkets are prohibiting Nigerians from making purchases and the FCCPC released a statement shutting the supermarket. It was established on Monday that Chinese supermarkets risk N10 million fine
Price Disputes Escalates; Consumer and Sellers Clashes Over Soaring Coats of Goods
Mr Eze, a lubricant trader in Abuja cautions that the FCCPC cannot regulate prices when there’s no good trading environment in the country
“The government should establish a good trading environment then the prices of goods will fall automatically”
Mr Lotana, a clothes trader also laments the government cannot regulate prices since the government is actually the one he pays to get goods
“Isn’t the government, the same government I paid when I bought it” he said
Mr Luiz @luizchin on X confirms his appreciation on the recent work of the FCCPC while stating the need to create avenue for production in the country.
“Let’s see how things goes, because as it stands we don’t do much when it comes to production”. He said.
Sim @selfmadeceleb3 on X states that the FCCPC needs to look into multi-choice operations in Nigeria selling goods at outrageous prices
“FCCPC needs to shut down and close multi-choice operations in Nigeria. The prices are too outrageous”. He said.
Expert Opinion
Mr Kingsley Ndimele, an economist and business consultant explained that price control agency needed to create a balance between the consumers and the manufacturers.
Price Control Board is a short term intervention from the government to curb inflation and over time after the Military regime in the 90’s that the FCCPC was inaugurated, it has brought some impact to a large extent.
The FCCPC headed by Babatunde Irueka it has done a major job in protecting consumers through the regulation of prices and others.
The whole price control initiative has not really been holistic some prices are being controlled and some are not.
In Nigeria, we operate the free market and the Oligopoly market and this is seen where the price control is more profound in the Petroleum industry especially when they have to put a price lien and a maximum price on Petroleum products though in recent times, some petrol station go over board and place their own price.
The price control is not profound in the cement industry because in the last couple of months, we have seen the hike in the prices of cement.
It is important for the government to balance both the interest of the consumers in terms of the regulations and also the profit of the manufacturer.
We must understand that every economics has it advantages and disadvantage and price control is not entirely without disadvantage because it tend to reduce investment in certain sector
price control needs to be holistic irrespective of Naira recent gains in the previous week, price of goods and commodities is still relatively high and this is largely due to human factor in market, the FCCPC don’t have the capacity to move into whole market in mass, they can only make examples with few super markets as seen in their recent operations.
There’s still a human factor that’s beyond the government to regulate price and this is seen in the recent fuel hike where petroleum marketers have received forehand reactions of fuel scarcity, they are bound to increase their price and this is seen as just a market reaction.
