Commodity Inflation: Stop intimidating traders, businesses – CPPE Tells FCCPC

The Centre for the Promotion of Private Enterprise, CPPE has urged the Federal Competition and Consumer Protection Commission to avoid a price control mindset.

Business Nigeria gathered that The Director of CPPE, Dr Muda Yusuf disclosed this in a statement on Sunday, September 1, 2024.

The CPPE comments came days after FCCPC issued a month ultimatum to traders, and businesses to crash the prices of goods.

Reacting, CPPE said the disproportionate focus of FCCPC on the retail segment of the economy calls for concern, adding that the economic think-tank group stressed that consumer protection is not about directly seeking to control prices at the retail end of the supply chain.

“The Federal Competition and Consumer Protection Commission [FCCPC] appears to be unwittingly transforming into a price control agency rather than a consumer protection commission”.

The disproportionate focus of the commission on the retail segment of the economy and pricing issues underscores this assertion since consumer protection is not about directly seeking to control prices at the retail end of the supply chain.

“It has been proven, theoretically and empirically, that the best way to protect consumers from exploitation is to diligently promote competition across sectors.”

“Our experience with the telecoms sector amply validates this position.”

“The emphasis should not be on pricing but on deepening the culture and practice of competition and a level playing field for all investors.”

“These factors include the naira exchange rate depreciation, high energy cost, high cost of logistics, seasonality of food production, high cost of funds, extortions on the highways, high post-harvest losses, high cargo clearing cost, the impact of the insecurity on food production, climate change and global factors disrupting supply chains.”

Meanwhile, the CPPE appeals to the FCCPC to refrain from further intimidation of the operators in the retail sector of the economy, most of whom are micro and small businesses, with many in the informal sector.