The Scourge of Price Gouging in Nigeria: Unfair Practices Hurting Consumers
Price gouging, the unethical practice of taking advantage of consumers by drastically increasing prices of essential goods and services during periods of high demand or crisis, has become a persistent issue in Nigeria. This exploitative tactic preys on vulnerable citizens, exacerbating poverty and economic hardship. This article examines the prevalence, causes, effects, and potential solutions to price gouging in Nigeria.
Price gouging is widespread in Nigeria, affecting various sectors, including Food and beverages, Pharmaceuticals, Petroleum products, Housing and real estate, Transportation
During this economic crisis in Nigeria, some unscrupulous businesses and individuals capitalise on the situation, hiking prices exponentially.
Effects of Price Gouging:
Solutions to Price Gouging:
To combat this problem effectively, the Nigeria government needs to pay attention to the following:
Price gouging in Nigeria undermines economic stability, exacerbates poverty, and erodes trust in businesses. To combat this scourge, a multi-faceted approach involving regulatory reforms, public education, and market competition is necessary. Citizens, businesses, and government agencies must collaborate to ensure fair pricing practices and protect consumer rights.
PRESS RELEASE NNPC Ltd Releases Estimated Pump Prices of PMS from Dangote Refinery, Based on September 2024 Supply The NNPC Ltd. has released estimated prices of Premium Motor Spirit (PMS), also known as Petrol (obtained from the Dangote Refinery) in its retail stations across the country. The estimated prices are based on negotiated terms between NNPC Ltd. and Dangote Refinery which recognise the current international gasoline prices and the prevailing foreign exchange rate in line with the provisions of the Petroleum Industry Act (PIA) 2021. The NNPC Ltd. can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024. We reassure Nigerians that any discount from the Dangote Refinery will be passed on 100% to the general public. Olufemi Soneye Chief Corporate Communications Officer NNPC Ltd. Abuja 16th September, 2024
Call to action:
The persistent fuel scarcity plaguing Nigeria is a stark indictment of the government's inability to address the nation's energy needs. Despite repeated promises, the government and NNPC have failed to revamp refineries, increase domestic fuel circulation and ensure efficient distribution networks in the country.
Consequently, this has caused Economic hardship: Soaring prices, reduced productivity, Transportation chaos, and long queues, and people can no longer afford to pay for transportation to their places of work again as a result of these businesses will be disrupted, closed down and many will lose their jobs.
We, however, calling on the government and NNPC to look into this matter and take decisive action, not rhetoric to prioritize the public concerns, ensuring affordable, accessible fuel for all.
Office address: Suite C29 Danziyal Plaza, Off Olusegun Obasanjo Way, CBD, Abuja
Tel: 09-290 3442, +234 805 220 5072. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.savetheconsumers.org
The position of the common man in Nigeria amidst the current economic hardship is characterized by significant challenges that stem from a combination of high inflation, rising costs of living, and inadequate government support. The situation has been exacerbated by various factors, including poor leadership, economic policies that do not prioritize the welfare of the average citizen, and a lack of accountability among political leaders.
Economic Hardship and Inflation
Nigeria’s inflation rate has soared to nearly 35%, with food prices increasing even more dramatically at around 40.5%. This surge in prices has made it increasingly difficult for ordinary Nigerians to afford basic necessities. The monthly minimum wage remains stagnant at 30,000 naira (approximately $19), which is insufficient to meet the rising cost of living. Many families are now rationing their food or seeking cheaper alternatives just to survive. Reports indicate that some individuals are resorting to consuming rice that is typically discarded during milling processes due to its affordability.
Impact on Daily Life
The common man in Nigeria faces daily struggles as wages have not kept pace with inflation. The cost of petrol has tripled within nine months, leading to increased transportation costs and further driving up the prices of goods and services. Consequently, many Nigerians find themselves unable to provide for their families adequately. The economic crisis has led to widespread frustration and despair among citizens who feel abandoned by their leaders.
Government Policies and Leadership Failures
The government’s decision to end fuel subsidies has significantly impacted the economy. While this policy was intended to alleviate financial burdens on public finances, it resulted in immediate price hikes that affected all sectors. Additionally, the removal of currency pegging led to a devaluation of the naira by over two-thirds, making imports more expensive and further straining household budgets.
Moreover, there is a pervasive sentiment among Nigerians that their political leaders are disconnected from their realities. The elite often benefits from policies designed without considering the implications for ordinary citizens. This disconnect fosters a sense of betrayal among the populace as they witness rampant corruption and self-serving behaviour among those in power.
Calls for Restructuring and Accountability
In light of these challenges, there have been increasing calls for restructuring Nigeria along regional lines so that each area can manage its resources effectively. Advocates argue that such an approach could lead to better governance and improved economic conditions for all citizens. There is also a pressing need for accountability from political leaders who must be held responsible for their actions and decisions affecting the lives of millions.
Conclusion: A Cry for Change
Ultimately, the position of the common man in Nigeria amidst hardship reflects a broader systemic failure where economic growth does not translate into improved living standards for most people. Addressing these issues requires comprehensive reforms focused on sustainable development that prioritizes inclusivity and equitable resource distribution.
Written by: Ugochukwu Onuoha
The Nigerian Communications Commission (NCC) has issued a directive to telecommunications operators to simplify their tariff plans, bundles, and promotional activities.
This move aims to provide clear, easy-to-understand, and accurate information about the cost of voice, short messaging service (SMS) and data services to subscribers.
The directive, titled "Guidance on the Simplification of Tariffs in the Nigerian Communications Sector," was issued on July 29, 2024. It mandates Mobile Network Operators (MNOs) to publish a comprehensive table showing the features of their tariff plans and bundle offers.
The table should contain all necessary information for subscribers to make informed decisions, including details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.
The guideline is the outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.
The objectives of the simplification guidelines are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness of promotional elements of tariff plans, protect consumers’ interests by providing clear and understandable tariff information so that they make informed decisions, and promote fair competition among licensees by standardising tariff structures.
Service providers are also required to display all relevant information about their tariffs, such as the name of the plan, price, validity period, price-per-second for on or off-network and international calls, expected data speeds, and fair usage policies.
“Operators can maintain existing bonus-led tariff plans till 31st December 2024, within which period operators are expected to educate and migrate all subscribers to the simplified tariff plans,” the directive stated.
The guidelines further mandate that MNOs must communicate tariffs to subscribers in "clear language and a user-friendly format," with full disclosure of a subscriber’s tariff plan via Unstructured Supplementary Service Data (USSD).
Additionally, “operators must offer stand-alone data bundles at fair prices to avoid tying consumers with products they do not need; bonuses on promotions must be stated in actual value; access fees and asymmetric fee structures must be eliminated,” among other conditions.
The NCC emphasised that while complying with these guidelines, operators must also meet the Key Performance Indicators (KPIs) standards set out in the Quality of Service (QoS) Regulations.
Signed:
Reuben Muoka
Director, Public Affairs
FACEBOOK: SAVETHECONSUMERS
X: SAVETHECONSUMERS
OFFICE ADDRESS: Suite C29 Danziyal Plaza, Off Olusegun Obasanjo Way, CBD, Abuja
Tel: 09-290 3442, +234 805 220 5072. Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.savetheconsumers.org