The Nigerian Employers’ Consultative Association (NECA) has warned the Federal Competition and Consumer Protection Commission’s (FCCPC) against regulation of prices.
The association said the commission’s actions may inadvertently harm the economy if broader issues affecting market dynamics are ignored.
In a statement made available to BusinessDay, Adewale Oyerinde, director general of NECA, expressed displeasure with the FCCPC’s recent directives mandating retailers to reduce prices.
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He said 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.
He said, “Price manipulation does occur, but the market should be allowed to regulate itself within the boundaries of fair competition.”
Oyerinde emphasised the importance of empirical data and a comprehensive understanding of cost structures in determining fair pricing rather than what he called ‘conjectures’ by regulatory bodies.
Highlighting the need for a more holistic conversation, he urged 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.
Also, he urged the federal government to create a fair playing field for businesses as against giving handouts.
According to the director, different regulatory agencies impose conflicting requirements, thereby creating additional challenges for businesses already struggling with high operational costs.
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Oyerinde, therefore 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.
Similarly, he called for an approach that balances the need for consumer protection with the realities of operating a business in Nigeria’s challenging economic environment.
Oyerinde 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.
