Mohammed Shosanya
The Centre for the Promotion of Private Enterprise,CPPE,has cautioned the Federal Competition and Consumer Protection Commission against intimidating retail traders in the country.
Managing Director of the CPPE,Dr Muda Yussuf,gave the suggestion against the recent one month ultimatum given to marketer traders to reduce the costs of their products.
He said,the commission appears to be unwittingly transforming into a price control agency rather than a consumer protection commission, adding that consumer protection is not about directly seeking to control price at the retail end of the supply chain.
He said,this’s why the CPPE is concerned about the approach, methodology, targeting and the recent threats by the FCCPC to market leaders, traders and supermarket owners.
He added:”The commission seem to be fighting the symptoms rather than dealing with the causes of the current inflationary pressure in the economy. Even then, the core mandate of the commission is not to fight inflation. The fiscal and monetary authorities are statutorily responsible for macroeconomic policy issues and are better placed to deal with the challenge of high prices.
“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. Intense competition makes profiteering difficult and diminishes the chances of exploitation of consumers. When consumers have choices, it is difficult to exploit them.
“FCCPC to traverse markets across the country with objective of ensuring price regulation is unlikely to yield concrete outcomes. This is not a sustainable strategy. What we need to fix are the fundamentals driving production, operating and distribution costs which resulted in spiraling inflation in the first place.
“The dynamics of pricing and prices in an economy are much more complex and fundamental and do not seem aligned with the comprehension of the FCCPC on the issue. The variables are numerous, multidimensional and dynamic. It is difficult to make pronouncements on issues profiteering in such circumstances without a rigorous analysis based on data”.
He appealed 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.
The sector,he said,creates millions of jobs across different levels and geographical jurisdictions,adding that there is an emerging risk of market suppression and private enterprise repression by the FCCPC, if the current trajectory continues.
He said,this marks an elevation of regulatory risk in the Nigerian economy which is detrimental to investors’ confidence.
According to him, these traders are also victims of the current economic headwinds, especially the inflationary pressures.
He said:”High prices negatively impact their sales and profit margins. Many of them had in fact shut down their businesses because of the current economic shocks.
“The commission should work in collaboration with the other agencies of government to tackle the fundamental causes of inflation in the economy.
“The focus should be on causative factors driving prices, not the symptoms. This is a more sustainable approach than resorting to intimidation of traders, supermarket owners and market men and women.
“It is also important to draw attention of the commission to areas where there are frequent consumers rights violations like the aviation, health, energy markets, electricity market, financial services, telecoms and cable Tv sectors. These areas that demand the attention of the commission even more than the markets”.
