On April 18, 2024, the Federal Government of Nigeria began surprise inspections at various supermarkets and markets in the Federal Capital Territory (FCT) for the enforcement of rules on displaying prices and quantities. This is with the goal of ensuring the reduction of Food Prices across the country. The government announced that these surprise inspections will be ongoing at supermarkets and open markets in Lagos State, Port Harcourt, Kaduna, and Ibadan to investigate sudden price increases.
Any companies found guilty of unfair practices such as market manipulation, excessive pricing, or forming cartels will face strict consequences. During an enforcement operation targeting grocery store price gouging and illegal pricing schemes, Dr. Adamu Abdullahi, the Executive Secretary of The Federal Competition and Consumer Protection Commission, made the announcement. On April 17, 2024, the commission increased surveillance on formal and informal markets to catch businesses overcharging for necessary items, with plans to take enforcement measures.
The consistent rise in food prices has been a major factor.
In light of consumer complaints regarding increasing prices of goods despite the naira’s recent improvement, this decision has been made as a direct reaction. The consistent rise in food prices has been a major factor contributing to Nigeria’s headline inflation reaching 33.2%, with food Inflation reaching an all-time high of 40% in March 2024. Despite previous success in sealing other supermarkets, some continue to engage in deceptive practices. Customers often find discrepancies between the products on the shelf and what they are charged for at the checkout counter.
It is unacceptable to have items without price tags when checking out customers. This can lead to prices being entered at the discretion of the cashier, which is not permissible. The dormant Stallion Group, which has been inactive for an extended period, is still available in the market without public knowledge. Some individuals are Packaging ordinary local rice under the false impression that it is the well-known stallion or kappa brand, deceiving consumers into buying it.
FCCPC has made plans to conduct inspections at various large markets.
Section 69 of the 2018 Federal Competition and Consumer Protection Act imposes a penalty of either ₦50m or 10% of the annual turnover on individuals or businesses found guilty of violating the law. The FCCPC director revealed intentions to implement a price monitoring tool to stop major supermarkets in Nigeria from overcharging consumers. He stated that the Commission has made plans to conduct surprise inspections at various large markets across the nation, starting in the FCT. This is to prevent traders from unfairly raising prices of goods through their Market Unions and Associations.
Due to limited staff, they are unable to visit all supermarkets simultaneously. They will be exploring other general markets and engaging with open market vendors to inquire about associations’ involvement in addressing the situation. Currently, the focus is on Abuja, but previous operations were conducted in Port-Harcourt and Lagos. Next on the agenda is Kano, followed by visits to Port-Harcourt, Lagos, Ibadan, and Kaduna. These locations are the priority for now, with other states to be considered later.
Related Article: FCCPC Warns Firm over Price Manipulation
Next week, the Bank of Industry will launch a price tracker to monitor costs. Abdullahi explained that by monitoring commodity prices nationwide, they could quickly identify any unexplained price increases and take action to stop any suspicious activity. Yunusa Yusuf, the General Manager of the Supermarket, told reporters during a post-raid interview that he would reveal the sources of the counterfeit foreign rice. Despite previous discrepancies, Yusuf has committed to following the FCCPC regulations regarding consumer rights from now on to prevent any further issues.