Nigeria: Business Leaders Push Back Against FCCPC’s Price Reduction Mandate, Citing Economic Challenges

Entrepreneurs, business owners, and industry stakeholders are raising concerns about the recent directive issued by the Federal Competition and Consumer Protection Commission (FCCPC), which gave traders a 30-day ultimatum to reduce the prices of goods or face sanctions. The FCCPC has since clarified that the directive was aimed at curbing price gouging, market barriers, and other anti-competitive practices rather than enforcing arbitrary price controls.

FCCPC’s Executive Vice Chairperson, Tunji Bello, acknowledged the complex macroeconomic environment and assured that the Commission is collaborating with stakeholders to address the broader economic challenges that businesses face. However, industry leaders are questioning the practicality and fairness of this directive.

Eke Ubiji, Executive Secretary of the Nigerian Association of Small and Medium Enterprises (NASME), criticized the FCCPC for not adequately understanding the reasons behind rising prices. He argued, “How can you ask traders, who are already struggling with high procurement costs, to reduce prices within a month? The government should first address the underlying economic issues like foreign exchange rates, import costs, and fuel prices before expecting traders to lower prices.”

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), expressed concern that the FCCPC is overstepping its mandate and becoming a de facto price control agency. He emphasized that the Commission should focus on promoting competition rather than attempting to regulate prices at the retail level. “The best way to protect consumers is to promote competition across sectors. When consumers have choices, exploitation becomes difficult,” Yusuf explained.

Yusuf also pointed out that the retail sector, which comprises millions of small businesses, is already highly competitive, making sustained price gouging unlikely. He urged the FCCPC to focus on addressing the root causes of inflation, such as exchange rate fluctuations, high energy costs, and logistical challenges, rather than targeting traders who are also victims of these economic pressures.

Femi Egbesola, President of the Association of Small Business Owners in Nigeria (ASBON), lamented the lack of supportive government policies for small businesses. He noted that many businesses have shut down due to the harsh economic climate, and the FCCPC’s directive could exacerbate this trend. “Most of us are already selling with little to no profit. The government needs to understand how a free market works and focus on solving the real issues like FX and customs duties,” Egbesola said.

Business leaders are calling on the FCCPC and the government to rethink their approach, warning that further punitive measures could push more businesses over the edge. They argue that addressing the fundamental economic challenges will naturally lead to lower prices, without the need for heavy-handed regulation.