‘This is unacceptable,’ FG vows clampdown on traders inflating commodity prices as Naira strengthens

The Federal Government has vowed to take stringent regulatory measures against traders whom it said are unfairly inflating prices of goods and commodities.

Expressing worry that despite the recent appreciation of the Naira against the dollar, the Federal Government, through its agency, the Federal Competition and Consumer Protection Commission, FCCPC, said consumers continue to face escalating costs without a corresponding decrease in prices of goods and commodities.

“This situation is unacceptable, and the FCCPC is committed to protecting consumers from exploitation,” the Commission’s chief Adamu Abdullahi said in a statement on Wednesday, April 17.

“The FCCPC understands the significant financial strain these rising prices are placing on Nigerian households. As a result, the Commission is taking proactive steps to address this issue.

“While the FCCPC cannot directly regulate prices, the Commission will utilize its existing legal framework to enforce fair competition and consumer protection provisions.

“This includes monitoring and investigating unusual price hikes, addressing complaints filed by consumers, and taking action against any businesses found to be engaging in anti-competitive practices such as price-fixing, price gouging or cartel formation.”

The Commission said its operatives have been directed to intensify monitoring of both formal and informal markets, where businesses may be taking advantage of market conditions to unfairly inflate prices, and ramp up enforcement activities.

“The operatives will be working collaboratively with trade associations, farmer groups, and other stakeholders to identify and remove unnecessary barriers to entry in various sectors, combat price-fixing, and dismantle cartels. This will encourage increased competition, ultimately leading to lower prices for consumers.”

The naira on Monday, April 15, continued its resurgence against the US dollar as it strengthened N1,136 to a dollar at the official market and N1,050 to a dollar at the parallel market at the close of trading activities.

This was as traders predicted the dollar’s fall to below N1,000 before the end of the week.

At the official foreign exchange market, data from the FMDQ Securities Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market, NAFEM, revealed that the naira surged by 6.1 percent or N69 from N1,205 to a dollar recorded on Friday, April 12, to N1,136 on Monday, April 15.

The total daily turnover dropped slightly to $251.60 million on Monday, from $281.34 million recorded on Friday.