Regulations are important to protect consumers from unwholesome practices, especially price gouging. While it may seem unfair to firms equally struggling to survive to maintain a decent margin amid the country’s structural challenges, the rise of oligarchs in different sectors of the economy calls for concern. With weakened household incomes, all eyes on the Federal Competition and Consumer Protection Commission for some reprieve in checking abuses in many sectors. FEMI ADEKOYA writes.
Indeed, the Nigerian Electricity Regulatory Commission had adjusted the tariffs payable to Discos, as some of the power firms got a raise in their tariffs, while others had theirs reduced. The upward review comes after the 11 commercial airlines met at the meeting of the Airline Operators of Nigeria in Lagos on Thursday, where matters of mutual survival were discussed.
This equally reinforces the need for the consumer protection commission to check the activities of cartels in different sectors. However, Flour Mills of Nigeria Plc and Dangote Sugar Refinery Plc debunked allegations by BUA Foods Plc of creating artificial scarcity of sugar amid decision to suspend sales.
The Act prohibits agreements made to restrain competition such as agreements for price fixing, price rigging, collusive tendering, etc. . Though the FCCPC was able to get the court to back its actions against businesses found to be engaged in unfair pricing, there are concerns about its ability to secure compliance and also extend its influence across other sectors where consumer complaints are very loud.Most consumers in Nigeria would unlikely buy big-ticket items in the next 12 months, the last survey by the Central Bank of Nigeria has revealed.
“This indicates that the majority of consumers believed that the current quarter was not the ideal time to purchase big-ticket items like consumer durables, motor vehicles and houses and lots. “The consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.5 and 28.9 points, respectively.”
On borrowing and exchange rates, consumers expect the borrowing rate to rise and anticipate the naira to appreciate in the next 12 months, with indices of 12.2 and 3.9 points, respectively.