High cost of transportation, multiple taxation, responsible for high prices of goods, FCCPC hints FG

The Federal Competition and Consumer Protection Commission’s fact finding has listed high cost of transportation and multiple taxation as the main factors responsible for the rising price of commodities that defied naira rebound and government efforts to stabilise the economy.

The FCCPC Director, Surveillance and Investigation Mrs. B.A Adeyinka, who briefed journalists during a market surveillance to enforce prices today in Masaka Markets, Nasarawa State said 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.

She said “The cost of transportation is a significant burden on the sellers, and this cost is inevitably passed on to the consumer. For instance, a product that once cost N15,000 now sells for N50,000. This drastic increase is largely due to higher transportation expenses.

“Despite government efforts to stabilize the currency, prices remain high. Our findings point to a complex web of factors, including multiple layers of taxation and transportation costs, that are driving prices up.”

According to her, the FCCPC conducted extensive interviews with marketing executives and sellers across various sector.

The findings highlighted the impact of the ‘herdsmen men crisis’ on rural farmers and the lack of intervention in these areas.

“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,”

The FCCPC said it 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.