Sahad Store, a well-known supermarket in the Garki neighbourhood of Abuja, was sealed by the Federal Competition and Consumer Protection Commission. The agency cited the store’s lack of transparency in pricing as the reason for the closure. Interestingly, this action coincided with President Bola Tinubu’s recent announcement of initiatives aimed at addressing the ongoing food crisis in Nigeria. On Thursday, a joint effort between the Federal Government and state governors resulted in the establishment of a committee dedicated to addressing the problem of product hoarding within the country.
Minister of Information and National Orientation, Mohammed Idris revealed this information following a meeting at the Presidential Villa in Abuja. During the meeting, President Bola Tinubu met with governors, heads of Security Agencies, and some ministers. Idris pointed fingers at certain traders for hoarding food products and announced that security agencies were instructed to work with governors to address this issue. The President agreed to establish the committee to discuss the topics addressed during the meeting further.
Agencies are tasked to address the issue of goods stockpiling.
It is understood that addressing all the issues raised during the meeting is not feasible; therefore, the discussions will continue indefinitely. The Director General of State Services, the National Security Adviser, and the Inspector General of Police are tasked with collaborating with state governors to address the matter of individuals who are stockpiling goods. As of now, it is essential for the country to distribute food to the population in order to regulate prices and ensure that most Nigerians have food on their tables.
Greedy traders are deliberately withholding these essential goods, causing suffering for Nigerians in order to profit more themselves. Therefore, they should take action to address this issue immediately. The President has made a decision to coordinate with state governors in order to ensure that security agencies work together to put an end to this situation. The management of Sahad Store has been accused by the Federal Government of misleading customers and not adhering to the prices listed on the shelves.
Guilty individuals will pay ₦10 million or serve six-month prison sentence.
FCCPC Acting Executive Vice Chairman Adamu Ahmed Abdullahi headed the enforcement team that closed the store. He told reporters that the commission’s initial investigation found evidence of customer mistreatment and dishonest pricing practices at the supermarket. The store will be closed by the FCCPC until additional investigation is completed. They discovered that the store was engaging in deceptive pricing practices and lacked transparency in their pricing, a violation of Section 115 (3) of the law, which states that consumers should not be charged more than the price displayed for any product or service.
According to Section 155, corporations that break the law can face fines of up to 100 million naira or higher. Additionally, if the company’s directors are found guilty, they must pay ₦10 million each or serve a six-month prison sentence, or both. Their actions ensured that they followed the legal requirements. When they first invited them to present their case, they did not appear. Eventually, they sent a lawyer to represent them, but he claimed to be unfamiliar with the details of the situation. In order to access the store, they must ensure that they complete all necessary tasks.
Related Article: FCCPC warns firms over price manipulation
Hoarding food products can create shortages for others, especially during crises, leading to increased prices and food insecurity. Excessive food storage can result in waste as items expire or spoil, posing health risks from pests and bacteria. Financial strain may occur from the upfront investment required for hoarding. Disruption of supply chains can lead to logistical challenges in food distribution. Social consequences include heightened anxiety, fear, and distrust within communities. Hoarding can exacerbate these negative impacts on both individuals and society as a whole.
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FCCPC: Website
