FG Reveals Reason Behind High Cost Of Goods, Foodstuffs Despite Naira Gains

FG has revealed the reason behind the high cost of goods and foodstuffs despite the Naira gain and quick recovery.

 

NewsOnline Nigeria reports that the Federal Competition and Consumer Protection Commission (FCCPC) on Saturday released the findings of a comprehensive investigation into the factors driving the relentless increase in consumer costs.

This Nigeria news platform understands that despite efforts by the Bola Ahmed Tinubu-led government to stabilize the currency, prices continue to soar, leaving consumers burdened by the financial strain.

According to the Director of Surveillance and Investigation, Mrs. B.A. Adeyinka, the FCCPC conducted extensive interviews with marketing executives and sellers across various sectors to identify the root causes of the problem.

 

The investigation revealed a complex web of factors contributing to the high prices, including multiple layers of taxation and transportation costs.

 

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“The cost of transportation is a significant burden on sellers, and this cost is inevitably passed on to the consumer,” Adeyinka explained during a market surveillance exercise in Masaka Markets, Nasarawa State, on Saturday.

 

She added “For instance, a product that once cost N15,000 now sells for N50,000. This drastic increase is largely due to higher transportation expenses, the rising cost of pesticides, and security concerns in certain areas.”

 

The FCCPC’s findings highlight the need for urgent action to address the issue. As a first step, the commission plans to compile a report on the multiple taxes affecting the market and advise the government on potential solutions. Adeyinka stated that by reducing these taxes, the FCCPC aims to ease the financial burden on both sellers and consumers, ultimately unlocking the market and promoting economic growth.

 

In addition to the investigation, the FCCPC has also taken enforcement action against businesses flouting price and quality standards.

 

Recall that on Thursday, the commission sealed 4U Supermarket Wuse 2 for breaching these standards. According to the acting Chief Executive Officer of FCCPC, Adamu Abdullahi, the commission will continue price enforcement in other states to ensure compliance with regulations.

 

The executive chairman of the market, Gimbal Salasi, expressed support for the FCCPC’s efforts, stating that market executives are working to ensure hitch-free market operations and price regulations.

 

As the commission continues to monitor prices and enforce regulations, consumers are expected to get some relief from the relentless increase in costs. However, sustained efforts from all stakeholders, including the government, businesses, and consumers, are necessary to address the complex issues driving high prices and ensure a more stable economic future.