It was one of those mornings when the usual hassle of catching the bus to the office turned to a bigger trouble. I and some other commuters were practically stuck as there was no vehicle until a commercial driver came to our rescue (so we thought) but the price he called for the ride made us exclaim in disbelief which left me pondering on the need for a price regulation in Nigeria.
When fares go up without warning, it directly affects one’s monthly budget. Food, fuel, and housing prices have surged especially during economic shocks or global events. The average man down the street and low- income families struggles when utility prices go up sharply. Price votality doesn’t just hurt individuals – it creates economic uncertainty. Small scale businesses close down because they couldn’t predict or manage input costs. Government- regulated pricing for key goods could give businesses more stability and confidence to operate.
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Most times, price increases weren’t just due to supply chain issues, but due to opportunistic behavior from sellers. During a local shortage, basic items like rice, yam tubers, flour, garri, toiletries, kerosine, detergents, sugar were being sold 5 to 10 times their normal price. In situations like this, price control could have prevented exploitation and made these items accessible to everyone.
In Nigeria, inflation has significantly impacted the daily lives of many individuals, particularly those in sectors like transportation and food. A commercial driver, for example, often faces rising fuel prices, saw it as a great opportunity, inflates the transport fare making it difficult for an average Nigeria to afford the fare.
Nigeria has experienced persistent inflation in recent years, with prices of essential goods and services rising beyond the reach of average citizens. The cost of staple foods, fuel, transportation, and household items have increased significantly due to factors such as currency devaluation, fuel subsidy removal, and insecurity. These developments highlight the urgent need for effective price control mechanisms to protect consumers and stabilize the economy.
Price control refers to government regulation of the prices of goods and services to maintain affordability and prevent exploitation. In Nigeria, price control can help curb artificial inflation caused by hoarding, monopolistic practices, and speculative trading. By regulating the prices of essential goods – such a s food, fuel and medicine – the government can protect vulnerable populations from extreme hardships.
Without price control, inflation disproportionately affects the poor and middle class, leading to reduced purchasing power, malnutrition and increased poverty. It also fuels social unrest and weaken economic confidence. In Nigeria, the absence of strict regulation has allowed traders to raise prices arbitrarily, especially during fuel price hikes or during currency depreciation periods.
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Price control in Nigeria is necessary to curb inflation, ensure affordability of essential goods, and protect consumers from exploitation during periods of economic instability. It is most needed in Nigeria as it will help stabilize markets and prevent price gouging in critical sectors like food, fuel and housing, where fluctuations can dis-proportionately affect low-income Nigerians.
It is more reassuring to know that price control in Nigeria has legal backing, rooted in statutes and policy guidelines. The Price Control Act of 1977 remains one of the foundational laws that empower the government to fix prices of certain goods and services deemed essential. Under this Act, the government can establish a list of controlled commodities and regulate their prices to ensure affordability and fair trade. Though this Act has seen limited enforcement in recent years, it provides the necessary legal framework for renewed intervention in times of economic distress.
The need for price control in Nigeria cannot be overemphasized as it is both urgent and justified, given the widespread economy hardship caused by inflation and market inefficiencies. While price control is not a long – term substitute for economic reform, it can serve as a crucial short-term strategy to stabilize prices, protect consumers, and restore public confidence. For maximum effectiveness, such policies must be well-targeted, transparently administered, and supported by broader economic reforms aimed at improving productivity and reducing dependency on imports. In doing so, Nigeria can strike a balance between market freedom and social protection, ensuring a more inclusive and resilient economy.
HAPPY DEMOCRACY DAY!
A concerned citizen,
Esther O. Oyeyemi, Esq.
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