Executive Commissioner of Operations at the Federal Competition & Consumer Protection Commission (FCCPC), Abdullahi Adamu, has warned that the management of markets must intervene to address the restrictive practices enforced by market associations.
GTN reports that, Adamu stated during an interview with ARISE TV, that “If they don’t stop these practices, we will apply the law.”
Adamu explained that while the FCCPC does not regulate prices, it combats distortions in the market caused by the actions of certain associations. He described how market associations require sellers to join their group before being allowed to trade, effectively creating barriers for those who bring goods to the market.
These associations he said, also dictate the prices of goods and control when members can sell their products, leading to artificial scarcity and inflated prices.
“FCCPC is not a price regulatory agency, we don’t regulate prices, what’s happening is that there are distortions n the market and it is the distortions we are fighting against, the obnoxious practices that are ongoing must stop.”
Adamu highlighted the detrimental impact of these practices on consumers, particularly in the context of challenges such as bad roads and unreliable transportation, which further drive up prices.
“We agreed that yes, prices have gone up… if a truck breaks down with tomatoes, the cost of rotten produce is passed on to consumers,” he remarked.
He stressed the importance of improving infrastructure and working with other agencies to address these issues effectively.
“Supermarkets are not helping matters either,” Adamu added, indicating that larger retailers also contribute to the problem.
Adamu concluded by discussing the significant data challenges in Nigeria, noting that accurate data collection is essential for the FCCPC’s efforts. Despite their limitations, the FCCPC has conducted research and reported on these issues, urging market management to take action.
