The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to participants in the food chain sector, cautioning against arbitrary increases in food prices.
Dr. Adamu Abdullahi, the Acting Executive Vice Chairman of FCCPC, emphasized that the commission would not tolerate price gouging, with swift and severe legal consequences awaiting violators.
FCCPC’s surveillance efforts revealed evidence of participants at distribution and retail levels engaging in conspiracies, price gouging, hoarding, and other unfair tactics. Abdullahi expressed concern that some actors in the food chain sector were exploiting consumer anxiety to inflate prices, labeling such actions as obnoxious, unscrupulous, exploitative, and illegal.
In a market where inflationary pressures and economic uncertainties are prevalent, the FCCPC’s focus on the food chain sector is particularly significant.
Responding to a Federal High Court order mandating the government to fix prices of certain food commodities, Dr. Abdullahi acknowledges the unusual practice in a free market but affirms that the commission is working with relevant stakeholders to develop measures to address excessive prices.
He reiterates the importance of empirical data in determining the causes of unfair prices, signaling a commitment to evidence-based decision-making.
Food inflation has surged to a double-digit rate, reaching 33.93% as of December 2023, marking the highest level in nearly a decade. A recent study underscores the severity of the situation, revealing that Nigerians allocate a substantial 60% of their income to food expenses. This alarming trend significantly contributes to the overall rise in the cost of living.
The escalation in food prices has triggered a proactive response from the federal government, prompting the declaration of a state of emergency on food security in the country.
Several interconnected factors have been identified as key drivers of this crisis. The removal of the fuel subsidy, the devaluation of the naira against the dollar, escalating insecurity in vast agricultural areas nationwide, and the decline in oil revenue collectively contribute to the challenging economic landscape, intensifying the inflationary pressures.
The removal of the fuel subsidy has had a cascading effect, influencing transportation costs and ultimately impacting the prices of goods and services, particularly in the food sector.
The weakening of the naira against the dollar amplifies the cost of imported goods, further straining the affordability of essential commodities.
Insecurity challenges in various agricultural regions disrupt farming activities, leading to reduced production and a subsequent scarcity of food items.
Adding to these challenges, the decline in oil revenue, a significant source of Nigeria’s income, has created fiscal constraints. The inability to adequately defend the naira against prevailing macroeconomic headwinds exacerbates the overall economic situation, contributing to the persistent hike in inflationary numbers.
The confluence of these factors paints a complex picture of Nigeria’s economic challenges, with food security emerging as a critical concern. As the federal government takes measures to address the state of emergency, it becomes imperative to adopt a multi-faceted approach
