The Centre for the Promotion of Private Enterprises (CPPE) has raised concerns about the Federal Competition and Consumer Protection Commission (FCCPC) shifting its focus from promoting competition and protecting consumer rights to engaging in price control.
Dr. Muda Yusuf, Director of CPPE, argued that the FCCPC’s recent actions, including threats to market leaders and traders, are misguided and risk undermining the core objectives of consumer protection. Yusuf emphasized that consumer protection is not synonymous with direct price control, especially at the retail level.
The CPPE believes that the FCCPC is addressing the symptoms of inflation rather than the root causes. The real drivers of inflation are macroeconomic factors such as the depreciation of the naira, high energy costs, and logistics challenges.
Yusuf urged the FCCPC to focus on understanding the economic dynamics and promoting robust competition across all sectors. He pointed to the success of the telecommunications sector as an example of how competition can benefit consumers through better services and pricing.
The Nigeria Employers’ Consultative Association (NECA) also expressed concerns about the FCCPC’s approach. NECA emphasized the importance of addressing key economic fundamentals to induce lower commodity prices and service charges.
NECA cautioned that using enforcement to moderate prices could lead to price control, hoarding of commodities, and further distortion of the economy. The organization urged the Federal Government to focus on measures that would encourage FX conservation, adopt a more beneficial exchange rate regime, and improve the business operating environment.
CPPE and NECA believe that the FCCPC should focus on promoting competition and addressing the underlying economic factors that contribute to inflation. By focusing on these areas, the FCCPC can effectively protect consumers without resorting to direct price control measures.
