The Federal Competition and Consumer Protection Commission has shared the results of a thorough investigation into the reasons behind the continuous rise in consumer expenses.
During a market inspection at Masaka Markets, Nasarawa State, Mrs. B.A Adeyinka, the Director of Surveillance and Investigation at FCCPC, talked about the various issues influencing the situation.
She mentioned that the FCCPC has extensively interviewed marketing executives and sellers in different sectors.
“Despite government trying to stabilize the currency, prices are still high. Our investigation indicates that multiple layers of taxation and transportation costs are playing a part in driving prices up,” she added.
As part of its compliance campaign, FCCPC closed down 4U Supermarket Wuse 2 for violating price and quality standards. Additionally, Adamu Abdullahi, the acting Chief Executive Officer of FCCPC, spoke about the Commission's commitment to enforcing pricing regulations in other states.
The investigation revealed that transportation costs are incurred at every stage of the supply chain, from farmers transporting their produce to local markets, to sellers moving goods to larger market squares, and finally to retailers delivering products to consumers.
“Transportation costs significantly burden sellers, and these costs are inevitably passed on to consumers. For example, a product that previously cost N15,000 now sells for N50,000. This significant increase is largely due to higher transportation expenses, the rising cost of pesticides, and security concerns in certain areas,” explained Adeyinka.
The investigation also highlighted the impact of the ‘herdsmen crisis’ on rural farmers and the lack of government intervention in these areas.
“Our initial step is to compile a report on the various taxes affecting the market and offer advice to the government on potential solutions.
“Our goal is to open up the market by reducing these taxes, thereby lessening the financial burden on both sellers and consumers,” she said.
FCCPC intends to engage with market executives to ensure there are no restrictions on bringing goods to the market.
“An increase in the availability of goods will naturally lead to lower prices. Additionally, we will address anti-competitive practices by cartels that limit supply, to guarantee a fair and competitive marketplace,” she said.
The FCCPC’s fact-finding mission is a critical step towards understanding and alleviating the factors contributing to the increased cost of living for consumers.
The market's executive chairman, Chief Gimbal Salasi, mentioned that they are striving for smooth market operations and price regulations. He appealed to the government for assistance in building good access roads for transporting commodities in and out of the market.
“We are making every effort to ensure smooth operations in the market. We have implemented security and sanitation measures. We urge the government to assist us in constructing good roads so that our goods can enter the market and attract more customers,” he said.
However, some traders expressed unhappiness about the high expenses of goods they had to buy and sell. They also expressed their discontent about the unfair demands for money and the act of charging taxes twice in the market.
“We are being deceived by the market leaders. They impose more than four different kinds of taxes on us every day in addition to the regular monthly fees,” said Mama Lucy, one of the traders.
In response to the accusations, the chairman stated that they are making every effort to ensure that every trader is treated fairly and not taken advantage of.
