The Federal Government of Nigeria launched a series of enforcement raids across supermarkets and markets in the Federal Capital Territory on Thursday. This initiative, aimed at ensuring compliance with price display and quantity regulations, marks the beginning of a broader campaign to mitigate the escalating cost of food commodities nationwide. The government plans to extend these unannounced inspections to other major cities including Lagos, Port Harcourt, Kaduna, and Ibadan in the upcoming weeks.
Dr. Adamu Abdullahi, the Executive Secretary of the Federal Competition and Consumer Protection Commission (FCCPC), spearheaded the initial enforcement exercise. During the operation, the FCCPC team focused on curbing price gouging and illegal pricing schemes that have been particularly rampant in grocery stores across the capital. The operation led to the sealing of 4U Supermarket and the confiscation of 33 bags of adulterated rice, which were found to be infested with weevils at one of the supermarket’s branches in Wuse II.
The crackdown comes in response to growing consumer outrage over the spiraling costs of goods, which contradicts the recent strengthening of the Nigerian naira. Nigeria’s food inflation has notably influenced the country’s headline inflation rate, which soared to an alarming 33.2% in March 2024, with food inflation itself hitting 40%. This trend was further exacerbated by a significant drop in the value of the naira against the dollar earlier in the year, leading to increased prices for essential goods and services and pushing the cost of living to record highs.
Despite assurances from the presidency that measures were in place to combat price manipulation and ensure a stronger naira, the expected decrease in the prices of essential commodities has yet to materialize. Ajuri Ngelale, the Special Adviser to the President on Media and Publicity, emphasized that the president had directed consumer protection agencies to enforce pricing that reflects the naira’s appreciation. He stressed the ongoing efforts to bring inflation under control and improve the economic conditions as refineries both private and public come back online, promising a stronger fiscal outlook and a fair reflection of the naira’s value in commodity prices.
The FCCPC’s recent activities have unveiled several malpractices within the market. For instance, a popular supermarket was found selling brands of rice that were no longer in production, misleading consumers with falsely labeled products. Additionally, there were discrepancies between the prices displayed on shelves and those charged at the point of sale, with some items lacking price tags altogether.
Dr. Abdullahi expressed deep concern over these deceptive practices, which not only exploit consumers but also undermine the economic gains from a strengthened national currency and reduced production costs. He revealed that in February, the FCCPC had also sealed Sahad Stores in Abuja for similar offenses including misleading pricing and a lack of transparency.
To combat these widespread issues, Dr. Abdullahi announced the FCCPC’s plans to introduce a price tracker. This tool aims to end the exploitation of Nigerian consumers by major supermarkets and ensure transparency and fairness in pricing. Under the 2018 Act of the Federal Competition and Consumer Protection, severe penalties are in place for violations, including fines up to N50 million or 10% of the annual turnover for the preceding business year.
