FCCPC Acting as Price Control Board Rather Than Consumer Protection Agency

The Federal Competition and Consumer Protection Commission (FCCPC), under the leadership of Executive Vice Chairman Mr. Tunji Bello, appears to be shifting its core mandate from consumer protection to outright price control. Observers have raised concerns that the agency, originally established to ensure fair market competition and protect consumer rights, is now actively enforcing price regulations, a function reminiscent of the now-defunct Price Control Board.

A thorough review of consumer protection agencies globally reveals that their primary role is to prevent unfair trade practices, ensure product safety, and advocate for consumer rights. However, the FCCPC’s recent actions indicate a heavy focus on controlling the pricing strategies of businesses rather than addressing consumer grievances or ensuring fair competition in the marketplace.

Mandate vs. Practice

The FCCPC was established by the Federal Competition and Consumer Protection Act (FCCPA) to regulate competition, prevent monopolistic behaviors, and promote consumer welfare. However, the agency has been issuing directives aimed at regulating prices in sectors such as food, pharmaceuticals, and telecommunications—an approach that suggests a shift towards price control rather than market regulation.

Economists argue that price control measures often distort market forces, leading to unintended consequences such as shortages, reduced investments, and a decline in product quality. Instead of enforcing price caps, experts suggest that the FCCPC should focus on tackling cartel behavior, price-fixing schemes, and exploitative business practices that harm consumers.

The Concern Among Industry Players

Businesses across multiple sectors have expressed concerns over the FCCPC’s interventions, stating that price regulation undermines free-market principles. A senior executive in Nigeria’s retail sector, speaking anonymously, remarked:
“We understand the need to protect consumers, but price control is not the way. Instead of regulating prices, the government should address inflation, production costs, and supply chain disruptions.”

Similarly, manufacturers and service providers argue that regulatory agencies should prioritize policies that enhance production efficiency and lower the cost of doing business, rather than enforcing artificial price ceilings.

Way Forward: A Call for Strategic Consumer Protection

Experts believe that the FCCPC must realign itself with its original purpose—ensuring that consumers receive fair treatment without directly interfering with pricing mechanisms. The focus should be on:

1. Preventing Exploitative Practices: Investigating cases of price gouging, misleading advertising, and fraudulent business tactics.
2. Enhancing Market Competition: Encouraging a competitive business environment that naturally leads to fair pricing.
3. Consumer Education and Advocacy: Empowering consumers with information on their rights and how to make informed purchasing decisions.
4. Collaborating with Economic Policymakers: Working with agencies such as the Central Bank of Nigeria (CBN) and the Ministry of Finance to address inflation and structural economic challenges affecting prices.

The FCCPC’s current trajectory raises critical questions about its operational focus. If the agency continues to act as a price control body rather than a consumer protection agency, it risks distorting market forces and discouraging investment. Moving forward, stakeholders are urging the commission to recalibrate its priorities, ensuring that consumer protection remains at the heart of its mandate while allowing free-market dynamics to determine pricing.

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