FG Raids Supermarket to Enforce Price Reduction – The Federal Competition and Consumer Protection Commission (FCCPC) executed surprise inspections at two supermarkets within the Federal Capital Territory, Abuja, to ensure compliance with regulations regarding the display of prices and quantities. This action, led by Dr Adamu Abdullahi, the Executive Secretary of the Commission, aimed at curbing the prevalent issue of inflated prices of food items nationwide. The initiative, which commenced in Abuja, is slated for expansion to other major cities such as Lagos, Port Harcourt, Ibadan, Kano, and Kaduna in the upcoming weeks.
Abdullahi highlighted that these impromptu inspections are part of a broader strategy to mitigate the persistent surge in prices, which has not corresponded to the recent strengthening of the naira. Furthermore, plans are underway to conduct similar raids at open markets within the FCT to counteract the unjustified hikes in the prices of essential goods.
During the extensive operation, the FCCPC took action against 4U Supermarket, sealing its premises and confiscating 33 bags of suspected counterfeit rice. This move came in response to consumer grievances regarding escalating prices amidst economic fluctuations.
The prevalent issue of food inflation, contributing significantly to Nigeria’s headline inflation rate of 33.2 per cent and a staggering food inflation rate of 40 per cent in March 2024, has been exacerbated by the devaluation of the naira earlier in the year. Despite assurances from the Presidency regarding efforts to stabilize prices, the anticipated reduction in the cost of essential commodities remains elusive.
In response to these challenges, the FCCPC, mandated to safeguard consumer rights, vowed to take decisive actions against entities found guilty of unfair market practices such as price manipulation and cartel formation. Notably, Sahad Stores in the Garki area of Abuja had previously faced closure for deceptive pricing practices.
Dr Abdullahi reiterated the Commission’s commitment to ensuring that prices accurately reflect market dynamics, emphasizing the need for transparency and adherence to regulations. Despite logistical constraints limiting simultaneous inspections across all markets, efforts will be intensified in various cities nationwide.
To enhance monitoring and curb exploitation, plans are underway to introduce a price tracker, enabling authorities to monitor price fluctuations and intervene where necessary. This proactive measure, scheduled for implementation in collaboration with the Bank of Industry, aims to foster accountability and deter price gouging.
In response to the enforcement actions, the General Manager of 4U Supermarket pledged cooperation and promised to cooperate with investigations. However, criticisms emerged from industry stakeholders, questioning the FCCPC’s mandate to regulate market prices and asserting that such interventions could disrupt market dynamics.
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