₦airaland Forum

The Federal Competition and Consumer Protection Commission (FCCPC) has ordered its officials to monitor and enforce fair pricing practices both in formal and informal markets in Nigeria amid the rising cost of living.

This is contained in a statement from its Acting Chief Executive Officer, Dr. Adamu Abdullahi, on Wednesday, April 17.

FCCPC argued that despite the recent appreciation of the Naira against the dollar, consumers continue to face escalating costs without a corresponding decrease in prices, adding that such a situation is not acceptable

The commission therefore said that its agents will increase surveillance of all market sectors, including formal and informal settings where there is potential for businesses to exploit market conditions by unjustly raising prices, and to enhance enforcement measures.

According to Abdullahi, the agents will collaborate with trade associations, farmer groups, and other relevant stakeholders to identify and eliminate unwarranted entry barriers across different sectors, fight price-fixing, and break up cartels.

“Despite the recent appreciation of the Naira against the dollar, consumers continue to face escalating costs without a corresponding decrease in prices.

“This situation is unacceptable, and the FCCPC is committed to protecting consumers from exploitation.
“While the FCCPC cannot directly regulate prices, the Commission will utilise its existing legal framework to enforce fair competition and consumer protection provisions.

“The Commission has directed its operatives to intensify monitoring of both formal and informal markets, where businesses may be taking advantage of market conditions to unfairly inflate prices, and ramp up enforcement activities.

“The operatives will be working collaboratively with trade associations, farmer groups, and other stakeholders to identify and remove unnecessary barriers to entry in various sectors, combat price-fixing, and dismantle cartels. This will encourage increased competition, ultimately leading to lower prices for consumers,” Abdullahi said.

Backstory
In an earlier statement by FCCPC, reported by Nairametrics, the commission had urged Nigerians to report unfair trade practices to them.

This was in response to citizens’ complaints that despite the appreciation of Naira against the Dollar, consumers continue to pay high prices for goods and services in the market.

While the Dollar has fallen significantly against the Naira both in the official and parallel market, headline inflation and food Inflation continue to rise, as per recent data from the National Bureau of Statistics.

The recent data from NBS revealed that food rose to 40.01% year-on-year as of March 2024, marking an increase of 15.56 percentage points from 24.45% in March 2023.

This surge in food inflation can be attributed to rising prices for items such as garri, millet, and akpu uncooked fermented (all part of the bread and cereals category), as well as yam tuber, water yam, and others.

https://nairametrics.com/2024/04/17/naira-appreciation-fccpcs-agents-to-monitor-prices-of-goods-in-nigerian-markets-ceo/

Local farmers aren't bringing down prices of garri, beans, maize, guinea corn, etc! Consumer protection agency should wake up and do their job; prices of locally produced foods are still rising, only imported rice is dropping.

If the farmers aren't bringing down prices, the government should open the border and import beans, garri, maize, etc since the farmers have refused to be sensible.

Smuggled rice is getting cheaper by the day.

EFCC, this is an economic crime, encouraging citizens to hold on to a foreign currency in Nigeria.

EFCC, do your job and arrest this woman now like you did to Bobrosky.

https://leadership.ng/naira-gain-surpasses-expectations-at-n1020-say-bdc-operators/


Leadership News
Naira Gain Surpasses Expectations At N1,020/$, Say BDC Operators
Written by Nafisat Abdulrahman 4 mins ago

ABCON President, Aminu Gwadabe.
ABCON President, Aminu Gwadabe.

The Association of Bureau De Change Operators of Nigeria (ABCON) has observed a faster-than-anticipated appreciation of the Nigerian Naira against the US Dollar.

President of ABCON, Aminu Gwadabe, disclosed this during a virtual appearance on Channels Television’s ‘Business Incorporated’ programme on Tuesday.


Naira Surges Against Dollar, Hits 5-month High


According to Gwadabe, as of Tuesday afternoon, Bureau De Change (BDC) operators were purchasing the US Dollar at N980 and selling at N1,020. This rate starkly contrasts with the official exchange rate of N1,161 per dollar set by the Central Bank of Nigeria (CBN). This significant appreciation marks a gain of over 40% from early January, when the rate hovered around N1,900 per dollar, to now approximate N1,100.

The CBN has implemented several strategies aimed at bolstering the Naira. These included clearing nearly $7 billion in valid foreign exchange backlogs and supplying foreign exchange to over 1,500 BDC operators at official rates. Additionally, the CBN has taken measures against cryptocurrency platforms like Binance, which have been accused of fostering speculative activities.

Gwadabe lauded the current administration’s efforts, noting the historic nature of the Naira trading lower in the parallel market compared to the official rate—a phenomenon not seen in the past 15 years. “It’s a long journey, it did not start today. It’s a culmination of many factors, even though it happened faster than expected,” he explained. “I want to congratulate the management of the Central Bank. For the first time in the history of Nigeria, over the past 15 years, we have never seen where the open market is lower than the CBN rate.”

My Mamaput joint said it's 58k yesterday. Rice falling hard, other food items are still up there - garri, beans, maize, guinea corn etc.

Badagry.

BreconHills:
How much has the government sold to the BDC's? About 0.6% of turnover

How can this be defending the naira?

Having said that - all governments defend their currencies - but this is different from past efforts such as dumping money from reserves on the market or restricting imports.

Maybe you should be specific on the actual method they are using to defend it.

Even China and Japan 'offend' their currencies to ensure cheap exports as producing countries.

What's the use of foreign reserves sef? Isn't it to influence monetary policies? You use it boost exports or make imports cheap for locals.

The sub-illiterates are just shouting 'defend Naira' every time as if the phrase was a taboo.

Denrele my man, congratulations!

Confirmedzombie:
Pure propaganda. Israel already begging UN to call Iran to order.

I beat my chest, Iran will destroy and level down Israel.

You cant provoke the Arab world and go scot free.

May Allah be unto our Iranian brothers and give them the strength and power to seal with Israel.

Insha Allah
Amin

Ignoramus, rest! Iranians aren't Arabs, but Persians. Because they are Muslims, they are Arabs, right?

What steps did the Nigeria's apex bank take to unify and bring down the exchange rates from 1900 to 1100/$?

Good answers to future Economics questions.

State of billionaires!

Bola Tinubu, the Financial Engineer.

By the time he finishes with the economy of Nigeria, Una go beg am to do another 8 years.

Omoawoke:
That’s because there are no Christians and Muslims there.
The more extremely religious Christians and Muslims you have, the more problem you have in that nation

Correct! Christianity and Islam are the foundation of crimes.

karkinase:
#1000 is the last support .. @ this point CBN and speculators will have a huge battle for price next direction.. anyone who wins we will follow

Comrade, what broker is this?

Omo, black market don crash immediately . CBN dey press their button wells.

santaclaws:
He's an Edo indigene please. Yoruba first names are scattered all over Niger delta (Ijaw, Itsekiri etc) but they're not Yorubas.

Akokos aren't Yorubas according to your history knowledge, right?

Another rally by King Naira coming! Inflation must nosedive by fire by force.

Good job!

Buying gold 2313 SL 2303 TP 2415

SenecaTheYonger:
Lol m. Do you know how much CBN spent in the last month to do this? Do you think they can do this forever? Oil revenues is still low and incoming revenue cannot support it.

You think they can spend this kind of money for 12 month? For 4 years? lol we will not even have. Foreign reserve by the time they’re done

That was during Emefy's time! CBN doesn't spend a dime to defend the Naira again. Forex inflows coming from the nnpc crude oil sales, diaspora remittances, and high demand for government treasury bills by foreigners, owing to increase in interest rate by the CBN.

GeneralDae:
CBN doesn’t just reduce rate like that. The rate they set for BDC’s are usually the lowest rates at the official market from the previous day transactions. So that 1251 was the lowest bid at the official market at that period. As at Thursday, the lowest bid at the official market was 1200. So if CBN is to set rates for BDC’s today it would be maybe around that 1200 except on Monday the lowest bid becomes 900.

Correct!

frank33:
So by your analogy, cbn can wake up tomorrow and say that 1 dollar is now 100 naira. And just like that 1 usd = 100 naira.

Do you not see that this cannot be true. Slow down with your excitement, you don't understand how this issue works.

I know the CBN can't just reduce it arbitrarily! The BDC rate is tied to the market-determined rate.

Basic123:
Yes!..they are monitoring it.


Actually learn work from yemi Cardoso.
We will definitely go far below 1000 by the end of the year.

Also CBN now receive our oil sales proceeds directly through NNPCL.There enough dollars to sells and still grown the foreign reserve.I wish Cardoso maintains the tempo!...and should never derail

Yemi is a commercial banker! Wale is an economist; everything going on at the CBN is the brainwork of Wale.

Bankers don't perform as CBN governor but economists. Banking is just a subset of economics!

So, Yemi does what Wale tells him to do. An economist no be banker mate.

benuejosh:
Those Obidients and emergency lovers of Nigeria who prayed hard for naira to hit N2000/$1habe been so quiet these days.

I dey tell you! Den go wait tire for that 2k.

Way to go! The rich must pay more to subsidise the poor! I support the skyrocketed electricity tariff for the rich. If I was a rich man, I would gladly pay.

If you can afford AC in Nigeria, you aren't poor and should be able to pay; 85% of Nigerians don't use AC!

Is CBN not monitoring the open market rate before fixing the price for BDC operators?

CBN, reduce the BDC rate to N900 now to expedite the appreciation of our dear Naira.

See Black market at 1242 and CBN --fixed BDC at 1252.

So, if CBN reduces to N900, definitely black market will crash below N900.

IMF should come and learn work from Wale Edun joor!

https://businessday.ng/news/article/fx-market-roars-back-to-life-with-1bn-single-day-trade/#google_vignette

King Naira going to N700/$!

Let me wait for Dollar to drop further.

StrafordSTONES:
I go still talk am again!!! Imagine some people who bought dollar at 1500 plus just because they want to trade cryptocurrency and trading spot with 5%, 10% gains and most times long lasting dips/red market. Now dollar has crashed and most of the coins you bought have not gotten to the price you bought them… you are losing both ways. Bro it is not very easy to make it trading spot and most people you know who made it through crypto either did memes, futures, idos, insider traders vis presale or getting early contracts, airdrops, or scammers!.



Choose one but I’m telling you the gospel truth, you are not gonna make life changing money trading spot.

Spot trading is for retirees and the rich nah!

If you're poor and want to be rich, trade futures!

How does one trade futures without TA?

1x2x3:
They are buying it from you @907 try to buy from them.

Buy from them to do what? Is dollar our currency? If you want to buy, go to BDC!

nedu666:
Even cbn is not selling dollars to bdc for 907 but you expect us to believe that polaris is selling at 907. If polaris is selling at 907 how much did they buy the dollars and who sold it to them

Norooons,keep quiet!

If you don't understand something, ask questions. Oya put brain down down and learn:

Banks aren't selling FX to you but they're buying only; that's the rate they're buying from you.

If you want to buy, go to BDC with your documents and buy.

Why should bank sell FX to you for what nah? Is it to buy kulikuli when Naira is there!

This is serious! If you want to sell, that's the exchange rate; no room for buying at all. If you want to buy, go to licensed BDC with your documents.

CBN don hold the blokos of hoarders fa!

JoshTim:
It will take time before food prices come down. Understand simple economics. The recovery rate of prices Is slower than the recovery rate of naira because inventory stock up at the old prices will have to be sold first based on First in First out basis.

Hmnn! FIFO, LIFO, LILO, FILO - Accounting terms