The Federal Government embarked on sporadic enforcement raids across multiple supermarkets and markets in the Federal Capital Territory on Thursday to ensure compliance with price display and quantity regulations, with the aim of mitigating the nationwide cost of food commodities.
It announced plans for unannounced inspections in super and open markets in Lagos, Port Harcourt, Kaduna, and Ibadan in the coming weeks to investigate abnormal price surges and take decisive action against companies found engaging in unfair market practices such as price manipulation, excessive pricing, or cartel formation.
Dr. Adamu Abdullahi, the Executive Secretary of The Federal Competition and Consumer Protection Commission (FCCPC), made this declaration during an enforcement exercise aimed at curbing grocery store price gouging and illegal pricing schemes.
During the operation, which lasted several hours, the FCCPC sealed 4U Supermarket and confiscated 33 bags of fake Stallion and Caprice rice contaminated with weevils from one of the supermarket branches located at 58 Adetokunbo Ademola Crescent, Wuse II.
Earlier, the commission had instructed its operatives to intensify monitoring of both formal and informal markets to identify businesses engaged in unjustified price hikes for necessary enforcement actions.
This initiative responds directly to consumer concerns about escalating commodity costs, which contradict the recent strengthening of the naira. Nigeria’s headline inflation has soared to 33.2 per cent, with food inflation reaching an unprecedented 40 per cent in March 2024.
The significant depreciation of the naira against the dollar in January and February exacerbated food inflation, driving up the prices of essential goods and services to record highs.
Despite the presidency’s commitment to combating profiteering and ensuring a stronger naira, substantial reductions in the prices of essential commodities have yet to materialize.
In response, Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, emphasized the president’s directive for consumer protection agencies to ensure that local prices reflect the naira’s increased value. He underscored the need for rigorous enforcement to prevent enterprises from exploiting consumers by not adjusting prices to reflect prevailing exchange rates.
The FCCPC boss reiterated the commission’s deep concern over the supermarket’s practices, which are detrimental to consumers despite a stronger naira and reduced production costs.
He revealed that a supermarket, 4U, was selling rice from Stallion and Caprice, although these companies ceased rice production in August 2022. Additionally, some products lacked price tags, while others displayed different prices at the counter.
The FCCPC intends to impose sanctions on those found culpable after investigations. Under Section 69 of the 2018 Act, offenders could face fines of up to N50 million or 10 per cent of their annual turnover.
Abdullahi also announced plans to introduce a price tracker to prevent major supermarkets from exploiting Nigerian consumers. The Commission will conduct raids in open major markets across the country, beginning in the FCT, to address arbitrary price increases by traders through their Market Unions and Associations.
In an interview after the raid, the General Manager of the Supermarket, Yunusa Yusuf, took responsibility for the fake foreign rice and pledged to cooperate with the FCCPC to identify the suppliers. He committed to adhering to FCCPC regulations on consumer rights to prevent future occurrences.
