The Centre for the Promotion of Private Enterprise (CPPE) has urged the Federal Competition and Consumer Protection Commission (FCCPC) to steer clear of a price control approach.
Dr. Muda Yusuf, the Director of CPPE, made this appeal in a statement released on Sunday.This statement from CPPE follows FCCPC’s recent ultimatum, giving traders and businesses a month to reduce the prices of goods.
CPPE expressed concern over FCCPC’s heavy emphasis on the retail sector, cautioning that consumer protection should not equate to direct price control at the retail level.
“The Federal Competition and Consumer Protection Commission [FCCPC] appears to be unintentionally transforming into a price control agency rather than focusing on its primary role of protecting consumer rights,” the CPPE stated.CPPE stressed that FCCPC’s mandate should be centered on fostering a competitive environment across various sectors and safeguarding consumer interests, rather than trying to control prices in the retail supply chain.
The group warned that FCCPC’s current strategy seems to address the symptoms of inflation rather than its underlying causes.
The economic think-tank highlighted that factors such as the depreciation of the naira, high energy costs, and logistical expenses are the real drivers of inflation, not retail price manipulation.
CPPE emphasized that promoting competition, rather than intimidating small traders and businesses, is the most effective way to protect consumers from exploitation.
CPPE called on FCCPC to focus on deepening competition and to understand the broader dynamics of pricing and inflation, rather than exerting pressure on the retail sector, which consists largely of micro and small businesses operating in a highly competitive environment.
