Adewale Oyerinde, the director-general (DG) of the Nigerian Employers’ Consultative Association (NECA), has issued a warning to the Federal Competition and Consumer Protection Commission (FCCPC) about regulating prices.
In a statement released by NECA on Monday, it was noted that Oyerinde made his comments during an interview.
He indicated that price regulation could unintentionally damage the economy if broader market issues are not addressed.
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On August 30, the FCCPC issued a one-month deadline for businesses to lower their prices.
Tunji Bello, the executive vice-chairman and chief executive officer (CEO) of FCCPC, stated that businesses involved in price fixing and gouging would face penalties, as such practices harm consumers and are deemed unfair.
Bello mentioned that the commission has detected patterns of price fixing in the retail sector.
Although Oyerinde acknowledged the FCCPC’s commendable goal of consumer protection, he argued that the approach overlooks the complex factors behind rising prices, including foreign exchange fluctuations, increasing 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,” Oyerinde said.
The DG stressed the necessity of relying on empirical data and a comprehensive understanding of cost structures for fair pricing, rather than “conjectures” by regulatory bodies.
OYERINDE CALLS FOR DIALOGUE
Oyerinde emphasized the need for an in-depth dialogue between regulators and the private sector to tackle the root causes of rising prices.
He highlighted that the government should focus on fostering a favorable business environment, which involves addressing supply chain issues and supporting critical areas such as energy costs.
The NECA leader also called for reforms to minimize contradictions within the regulatory system, advocating for a level playing field for businesses rather than providing handouts.
Oyerinde pointed to instances where conflicting regulatory requirements add extra challenges for businesses already burdened with high operational costs.
He urged for government intervention that avoids unintended negative socio-economic effects, such as job losses and increased insecurity.
The DG also sought a balanced approach that addresses consumer protection while considering the realities of operating within Nigeria’s challenging economic landscape.
Additionally, Oyerinde affirmed NECA’s commitment to ongoing dialogue with the government to promote sustainable development and a stable market environment for all stakeholders.
However, the FCCPC clarified that its recent directive for price reductions aims to combat exploitative practices rather than to control prices.
The FCCPC emphasized that its mandate is to protect consumers from unfair and deceptive practices and to ensure strong competition across all sectors.
