Price regulation: NECA urges FCCPC to understand market forces
The Nigeria Employers’ Consultative Association (NECA) has expressed concerns over the Federal Competition and Consumer Protection Commission’s (FCCPC) recent focus on pricing regulations. The Director General, NECA, Adewale-Smatt Oyerinde stated this, expressing displeasure with the FCCPC’s recent directives mandating retailers to reduce prices, asserting that the commission’s actions may inadvertently harm the economy if factors […]
The Nigeria Employers’ Consultative Association (NECA) has expressed concerns over the Federal Competition and Consumer Protection Commission’s (FCCPC) recent focus on pricing regulations.
The Director General, NECA, Adewale-Smatt Oyerinde stated this, expressing displeasure with the FCCPC’s recent directives mandating retailers to reduce prices, asserting that the commission’s actions may inadvertently harm the economy if factors affecting market dynamics are not managed.
He spoke against the recent directive by the FCCPC on traders to reduce prices of good items.
The FCCPC had clarified that its plan was not to regulate the prices of food items and other commodities in the Nigerian market.
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It clarified that its recent directives are solely aimed at curbing exploitative practices and maintaining a competitive marketplace.
But Oyerinde noted that while the intent behind these directives—to protect consumers—is commendable, the approach failed to account for the complex factors driving up prices, which include foreign exchange volatility, rising energy costs, and supply chain disruptions.
“Price manipulation does occur, but the market should be allowed to regulate itself within the boundaries of fair competition,” he stated.
He emphasised the importance of empirical data and a comprehensive understanding of cost structures in determining fair pricing rather than what he termed as “conjectures” by regulatory bodies.