The House of Representatives announced plans on Tuesday to investigate exploitative and predatory pricing practices against Nigerian businesses by foreign counterparts operating within Nigeria. The decision came following a motion put forward by Hon. Babajimi Benson, Chairman of the House Committee on Defence.
Hon. Benson expressed concerns about Nigerian businesses competing internationally while facing unfair practices domestically. He highlighted global business ethics frameworks like the United Nations Global Compact, OECD Guidelines for Multinational Enterprises, and ISO 26000, emphasizing their call for fair and competitive business conduct both locally and globally.
The Federal Competition and Consumer Protection Act of 2018 was noted as pivotal in regulating unfair business practices that distort competition or exploit market dominance in Nigeria. The House emphasized that a fair competitive market enhances economic efficiency and protects consumer interests by offering diverse, high-quality products at competitive prices.
The motion underscored instances where Nigerian businesses, such as Air Peace Airlines and Dangote Oil Refinery, faced challenges from foreign counterparts. For example, Air Peace’s introduction of affordable airfares on the Lagos-London route prompted other airlines to significantly reduce their prices, possibly to undermine Air Peace’s operations.
Dangote Oil Refinery similarly encountered hurdles with International Oil Companies (IOCs) allegedly engaging in unfair pricing of crude oil, forcing Dangote to resort to importing crude at higher costs.
The House expressed concerns that such predatory pricing and unfair practices not only harm Nigerian businesses but also stifle competition and economic growth. It noted instances where these practices led to the closure of viable businesses, limiting consumer choices and affordability.
Moreover, there were apprehensions that these practices aimed to perpetuate Nigeria’s dependency on foreign services, exacerbating unemployment and poverty while enriching foreign entities.
In response, the House called upon the Federal Competition and Consumer Protection Commission (FCCPC) to intervene immediately. It mandated joint committees on Aviation, Commerce, Petroleum (Upstream and Downstream), and Foreign Affairs to investigate predatory pricing and unethical competitive behaviors by foreign airlines and IOCs. A report is expected within four weeks to guide further legislative action.
Additionally, the House tasked its Committee on Legislative Compliance to ensure strict adherence to the investigative process and subsequent recommendations.
The resolution aims to safeguard Nigerian businesses from unfair practices, promote healthy competition, and ensure consumers have access to affordable, high-quality goods and services.
