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Nigeria clamps down on stores hoarding food, stoking fresh economic concerns

Nigeria clamps down on stores hoarding food, stoking fresh economic concerns
Spices in markets

Twenty-four hours after President Bola Tinubu revealed strategies to address the ongoing food crisis, the Federal Competition and Consumer Protection Commission (FCCPC) took decisive action, sealing Sahad Store, a prominent supermarket in Abuja’s Garki area.

The move follows accusations of deceptive pricing practices, sparking a wave of criticism from economists. Acting Executive Vice Chairman of the FCCPC, Adamu Ahmed Abdullahi, leading the enforcement, asserted the commission’s findings of price manipulation by the store management.

“What we have found out that these people are doing is misleading pricing and lack of transparency in the pricing, which is against Section 115 (3) of the law,” Abdullahi stated.

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He emphasized that the store would remain closed pending further investigation, citing legal consequences for such violations.

“In the long run, they sent a lawyer whom we asked if he was familiar with the facts of the case. He said he wasn’t. To unseal the store, they have to make sure that they do what is required to be done,” Abdullahi added, emphasizing the gravity of the situation.

This development coincides with the federal government’s collaboration with state governors to combat hoarding of essential commodities. Minister of Information and National Orientation, Mohammed Idris, announced the formation of a committee to address this issue following a meeting convened by President Tinubu.

“Mr. President has agreed to set up a committee to deepen the conversation that has happened at the just-concluded meeting. Of course, you know that it is impossible to complete most of the issues that were raised at the meeting so it is going to be a continuous one.

“The National Security Adviser, the Director General of the state services, and the Inspector General of Police have been directed to coordinate with the state governors to look at the issue of those hoarding commodities.

“At this point, the nation requires foods to be brought out to the people so that we can control prices and put food on the table of most Nigerians. Other commodity traders are busy hoarding these commodities so that Nigerians will suffer or they will make more money as a result. ?
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“So the governors and Mr. President have taken this decision that security agencies will collaborate with the state governors to ensure that this ends,” the minister said.

The Nigerian Customs Service (NCS) also arrested a fleet of trucks exporting food products from Kebbi State to Niger Republic.

However, economic experts have voiced concerns over the approach, warning of its potential repercussions. Financial analyst Kelvin Emmanuel criticized the move, labeling it as “a very dangerous thing” that could deter investor confidence and disrupt market dynamics.

“It’s a very dangerous thing and a huge red flag to investors in industrial goods as well as FMCG,” said financial analyst Kelvin Emmanuel. “That the President will mandate security agencies to raid warehouses holding goods under the pretext of fighting hoarding. Whoever is advising the President is doing him a huge disservice. Focus on demand and supply economics fgs!”

The government’s crackdown on businesses and the implementation of new measures to tackle hoarding has stirred concerns about broader economic implications and its potential for exacerbating hardships faced by the populace. Critics argue that a more holistic approach addressing underlying economic fundamentals is crucial to achieving sustainable solutions to the ongoing crisis.

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