Abdullahi Adamu, Executive Commissioner of Operations of the Federal Competition & Consumer Protection Commission (FCCPC), has issued a warning: in order to resolve the restrictive practices that market groups enforce, market management must step in.
In an interview with ARISE NEWS on Thursday, Adamu threatened to “apply the law if they don’t stop these practices.”
Adamu clarified that although the FCCPC does not control prices, it does fight against market distortions brought about by specific associations’ activities. He explained how market groups erect barriers for people who bring commodities to the market by requiring sellers to become members of their group before they may trade.
These associations he said, also dictate the prices of goods and control when members can sell their products, leading to artificial scarcity and inflated prices.
“FCCPC is not a price regulatory agency, we don’t regulate prices, what’s happening is that there are distortions n the market and it is the distortions we are fighting against, the obnoxious practices that are ongoing must stop.”
Adamu highlighted the detrimental impact of these practices on consumers, particularly in the context of challenges such as bad roads and unreliable transportation, which further drive up prices.
“We agreed that yes, prices have gone up… if a truck breaks down with tomatoes, the cost of rotten produce is passed on to consumers,” he remarked.
He stressed the importance of improving infrastructure and working with other agencies to address these issues effectively.
“Supermarkets are not helping matters either,” Adamu added, indicating that larger retailers also contribute to the problem.
Adamu concluded by discussing the significant data challenges in Nigeria, noting that accurate data collection is essential for the FCCPC’s efforts. Despite their limitations, the FCCPC has conducted research and reported on these issues, urging market management to take action.
ARISE NEWS