Need for Commodities Price Regulatory Agency to stem inflation

By Aminu Imam   Never has there been a time more than ever before in our nation’s economic history when there is an urgent need for the introduction, or rather re-introduction, of a price control mechanism like the Price Control Board of past governments decades ago. A simple general sampling of some major market prices […]

By Aminu Imam

 

Never has there been a time more than ever before in our nation’s economic history when there is an urgent need for the introduction, or rather re-introduction, of a price control mechanism like the Price Control Board of past governments decades ago.

A simple general sampling of some major market prices across the country of recent reveals that the prices of commodities, from essential to non-essential, have been extremely irregular and unpredictable.

The situation experienced by consumers across the country with each passing day is fast becoming almost unbearable.

Indeed, most buyers seem to be permanently at the receiving end of greedy traders.

The much-touted official inflation rate of approximately 18 per cent, according to the National Bureau of Statistics (NBS), is alarming, to say the least. As for the unofficial rate, or better still, the ‘real’ inflation rate, undeniably, almost every household and everyone purchasing any item or commodity in Nigeria today would agree that it is simply unsustainable.

In a bid to absolve themselves from blame, some traders have justified the rise in prices of food items to the devaluation of the naira.

However, many believe that the problem is with our traders, who often refuse to reduce the prices of their items even when they buy them cheap.

Some consumers insist that the sellers are not always sincere, as they are so desperate to make excessive profits at the expense of the buyers. Most of them are advocating for the re-introduction of a price control mechanism in the country.

In situation like this, many people are of the view that the authorities should consider the introduction of a price control mechanism to regulate the prices of goods in the country.

This was being implemented in the late 70s through the Price Control Act of 1977. The act basically gave the government powers, through its Price Control Board, to fix the price of a wide array of commodities.

It was, however, criticised by many Nigerians, particularly traders and businessmen, who considered it to be draconian and lopsided in favour of the buyers only.

Without doubt, the intent behind the implementation of such a control mechanism can stem from the desire to maintain the affordability of goods and to mitigate the impact of inflation on consumers.

An agency, which may be called Commodities Price Regulatory Agency to monitor and control the price of goods and services in our markets and set commodities’ price benchmarks for retailers and traders can perform such a vital role of checkmating the unwholesome price hike of goods and services by some unscrupulous traders.

Without such a crucial regulatory body, the only end result of this endless inflationary spiral would be poverty and misery for the majority of the populace.

Aminu contributed this piece from Tudun-Wada, Kaduna