The Nigerian Employers’ Consultative Association (NECA) has expressed concerns over the Federal Competition and Consumer Protection Commission’s (FCCPC) recent focus on pricing regulations, suggesting that the commission’s actions might inadvertently harm the economy, if broader issues affecting market dynamics are ignored.
Featuring on a Television Continental business programme, ‘Business Nigeria’, NECA’s Director General, Mr. Adewale Oyerinde expressed displeasure with the FCCPC’s recent directives mandating retailers to reduce prices.
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 said.
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.
Oyerinde also highlighted the need for a more holistic conversation between regulators and the private sector to address the root causes of rising prices stressing that the government’s role should be focused on creating a conducive environment for businesses to thrive, including addressing supply chain bottlenecks and offering support in critical areas like energy costs.
While advocating for reforms that would reduce contradictions within the regulatory system, he urged the Federal Government to create a fair playing field for businesses as against giving handouts.
He also cited instances where different regulatory agencies impose conflicting requirements, thereby creating additional challenges for businesses already struggling with high operational costs.
The NECA DG called for government intervention that would ensure that regulatory actions do not inadvertently lead to negative socio-economic outcomes, such as job losses and increased insecurity. Urging for an approach that balances the need for consumer protection with the realities of operating a business in Nigeria’s challenging economic environment, he expressed the organisation’s commitment to continue to engage with both governments to drive sustainable development and create a stable market environment that benefits all stakeholders.
