- NECA expresses concerns over the FCCPC’s directive for retailers to reduce prices, warning it may harm Nigeria’s economy if mismanaged
- NECA’s Director General criticizes the FCCPC’s approach, stating it overlooks factors like foreign exchange volatility and rising energy costs affecting prices
The Nigeria Employers’ Consultative Association (NECA) has raised concerns about the Federal Competition and Consumer Protection Commission’s (FCCPC) recent emphasis on pricing regulations.
NECA’s Director General, Adewale-Smatt Oyerinde, expressed dissatisfaction with the FCCPC’s recent directive mandating retailers to reduce prices. He warned that such actions might unintentionally harm the economy if the underlying market dynamics are not carefully managed.
Oyerinde criticized the FCCPC’s approach, noting that while the directive’s intention to protect consumers is commendable, it overlooks complex factors driving price increases, including foreign exchange volatility, rising energy costs, and supply chain disruptions.
“The market should be allowed to regulate itself within the boundaries of fair competition,” Oyerinde stated, emphasizing the need for a thorough understanding of cost structures and empirical data in determining fair pricing. He argued that relying on regulatory conjectures could harm market stability and economic health.
The FCCPC had clarified that its recent directives aimed not to regulate prices of food items and other commodities directly, but to curb exploitative practices and ensure a competitive marketplace.