The Federal Government has revealed the factors responsible for the high cost of food, other consumables and services across the country.
The Director, of Surveillance and Investigation at the Federal Competition and Consumer Protection Commission (FCCPC), Mrs B.A, Adeyinka, in a chat with newsmen, after a visit to Masaka Market in Nasarawa State at the weekend, blamed the situation on the high cost of transportation, insecurity and tax.
Adeyinka expressed worries that despite the government’s efforts to stabilize the Naira against the dollar, which has started yielding results, prices of food, goods and services keep hitting the sky.
“Despite the government’s efforts to stabilise the currency against the naira, prices of things remain high. Our findings point to a complex web of factors, including multiple layers of taxation and transportation costs, that are driving prices up,” she said.
According to her, the FCCPC had released its findings from a comprehensive investigation into the factors contributing to the relentless increase in consumer costs.
Adeyinka also disclosed that the FCCPC has conducted extensive investigations with marketing executives and sellers across various sectors.
According to the investigations: “Transportation costs are incurred at every stage of the supply chain, starting from the farmers who transport their produce to local markets, to the sellers who move goods to larger market squares, and finally to the retailers who deliver products to consumers.”
“The cost of transportation is a significant burden on the sellers and this cost is inevitably passed on to the consumers. For instance, a product that used to 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,” Adeyinka said.
The investigation also attributed the high cost to insecurity, especially herdsmen’s attacks on rural farmers as well as the lack of security agencies’ intervention in the affected areas.
While proffering solutions, Adeyinka noted: “Our first step is to compile a report on the multiple taxes affecting the market and advise the government on potential solutions.”
“We aim to unlock the market by reducing these taxes, thereby easing the financial burden on both sellers and consumers,” she added.
“The FCCPC plans to engage with executives of the markets to ensure there are no restrictions on bringing goods to the market.
“An increase in the availability of goods will naturally lead to lower prices. Additionally, we will address anti-competitive practices by cartels that restrict supply, to ensure a fair and competitive marketplace,” she said.
The FCCPC’s fact-finding mission is a crucial step toward understanding and mitigating the factors that contribute to the rising cost of living for consumers.
