Business

FCCPC uncovers Nigerian supermarket that inflates prices by 500%

The Federal Competition and Consumer Protection Commission, FCCPC, said it has uncovered a popular supermarket in Nigeria that inflates the price of its imported products by 500 percent.

The Vice Chairman of FCCPC, Tunji Bello disclosed this on Thursday at a stakeholders meeting on exploitative pricing held in Abuja.

He explained that a fruit blender called Ninja was displayed on the shelf of a supermarket in Texas United States at $89 (roughly N140,000), and the same product was displayed in a popular supermarket at Victoria Island in Lagos State for N944,999.

According to him, the Commission has resolved to take strict measures to curb price gouging, fixing and other unwholesome practices by businesses and traders in Nigeria.

“We have observed, for instance, that the margin in the prices of imported goods is very disproportionate in many cases; and in the case of locally produced goods, excessively inflated.

“This is an untenable situation, particularly in the retail segment, where we have identified patterns of price fixing perpetrated by some market associations, price gouging, and other anti-consumer practices.

“For instance, our check just two days ago at a popular supermarket chain in Texas, United States, revealed that a fruit blender called Ninja is displayed on the shelf at $89 (roughly N140,000). Just two days ago.

“Meanwhile, the same product was displayed at a popular supermarket on Victoria Island in Lagos for N944,999 on the same day and at the same hour. This represents more than 500 percent inflation of the cost,” he said.

Bello added, “Interestingly, when our undercover officer visited the same supermarket two weeks earlier, this same blender was on display with the price tag of N750,000. The question then arises: what is the basis for this arbitrary hike in the price of the blender compared to the United States? What business principle can justify this level of profiteering?

“Perhaps, I should cite a few more of the unpleasant discoveries we made during our investigation. In some notable supermarkets surveyed discreetly in Abuja, Kano, Port Harcourt and Lagos, we also found that prices were arbitrarily jacked up from time to time without any justifiable reason.

“In one particular big supermarket in Abuja, for instance, consumers were being charged N2,600 for an imported toilet soap at the payment point as the price tag was not displayed as earlier mandated by FCCPC. The same toilet soap was displayed for sale at N1,950 at a popular supermarket in Lekki, Lagos the same day. That already constitutes a double offense.”

He emphasized that “such price fixing is no longer acceptable and FCCPC will henceforth crack down on those involved in this profiteering scheme”.

The development comes as Nigerians continue to groan over the rising cost of living as July’s headline and food inflation stood at 33.40 and 39.53 percent respectively.

Business

CBN begins implementation of controversial Cybersecurity levy on transactions

The Central Bank of Nigeria, CBN, has confirmed the enforcement of the controversial cybercrime levy at 0.005 percent on all electronic transactions under its new guidelines for the 2024-2025 fiscal year.

Apex Bank disclosed this in its recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.

The development comes after the levy was purportedly suspended after it sparked debate among Nigerians.

The Cybercrime (Prohibition, Prevention, etc.) Act of 2015, is aimed at bolstering the nation’s cyber security infrastructure.

Meanwhile, the percentage has been reduced from 0.5 percent earlier announced in May 2024 to 0.005 percent in the new guidelines.

CBN reaffirmed its commitment to mandating banks and other financial institutions deduct the levy from all electronic transactions.

The revenue generated from this levy is directed towards a cybersecurity fund, intended to support measures that safeguard Nigeria’s banking system from the growing threat of cyberattacks.

“The CBN shall continue to enforce the payment of the mandatory levy of 0.005 percent on all electronic transactions by banks and other financial institutions, by Cybercrime (Prohibition, Prevention, etc.) Act, 2015″, the document said.

Business

FAAC: FG, States, LGs share N1.203trn August revenue

A total sum of N1.203 trillion in August 2024 Federation Accounts revenue has been shared among the Federal, State, and Local Governments in the country.

The balance in the Excess Crude Account (ECA) was $473,754.57.

The revenue distribution was announced at the September 2024 meeting of the Federation Accounts Allocation Committee (FAAC), held in Abuja.

The N1.203 trillion total distributable revenue comprised distributable statutory revenue of N186.636 billion, distributable Value Added Tax (VAT) revenue of N533.895 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.017 billion, and Exchange Difference revenue of N468.245 billion.

In a statement on Tuesday, Bawa Mokwa, Director (Press and Public Relations) in the Office of the Accountant General of the Federation (OAGF), said a communiqué issued by the Federation Accounts Allocation Committee (FAAC) indicated that total revenue of N2.278 trillion was available in August 2024.

Total deductions for the cost of collection were N81.975 billion, while total transfers, interventions, and refunds were N992.617 billion.

According to the communiqué, gross statutory revenue of N1.221 trillion was received for August 2024, which was lower than the N1.387 trillion received in July 2024 by N165.994 billion.

Gross revenue of N573.341 billion was available from Value Added Tax (VAT) in August 2024. This was lower than the N625.329 billion available in July 2024 by N51.988 billion.

The communiqué stated that from the N1.203 trillion total distributable revenue, the Federal Government received a total sum of N374.925 billion, the State Governments received N422.861 billion, and the Local Government Councils received N306.533 billion.

A total sum of N99.474 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

Regarding the N186.636 billion distributable statutory revenue, the communiqué stated that the Federal Government received N71.624 billion, the State Governments received N36.329 billion, and the Local Government Councils received N28.008 billion.

A sum of N50.675 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

From the N533.895 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N80.084 billion, the State Governments received N266.948 billion, and the Local Government Councils received N186.863 billion.

A total sum of N2.252 billion was received by the Federal Government from the N15.017 billion Electronic Money Transfer Levy (EMTL), while the State Governments received N7.509 billion, and the Local Government Councils received N5.256 billion.

From the N468.245 billion Exchange Difference revenue, the communiqué stated that the Federal Government received N220.964 billion, the State Governments received N112.076 billion, and the Local Government Councils received N86.406 billion, while N48.799 billion (13% of mineral revenue) was shared with the benefiting States as derivation revenue.

In August 2024, Oil and Gas Royalty, Petroleum Profit Tax (PPT), Value Added Tax (VAT), Import and Excise Duties, Electronic Money Transfer Levy (EMTL), CET Levies, and Companies Income Tax (CIT) all recorded decreases.

Business

Inflation rate drops to 32.15%

Nigeria’s inflation rate drops to 15.60% in January

The Nigerian headline inflation rate dropped to 32.15% in August. This is according to the National Bureau of Statistics.

In its latest report, the NBS said the August 2024 headline inflation rate showed a decrease of 1.25% points.

It said: “In August 2024, the headline inflation rate further eased to 32.15% relative to the July 2024 headline inflation rate of 33.40%. Looking at the movement, the August 2024 headline inflation rate showed a decrease of 1.25% points when compared to the July 2024 headline inflation rate.

“However, on a year-on-year basis, the headline inflation rate was 6.35% points higher compared to the rate recorded in August 2023 (25.80%).

“This shows that the headline inflation rate (year on-year basis) increased in August 2024 when compared to the same month in the preceding year (i.e., August 2023).

“Furthermore, on a month-on-month basis, the headline inflation rate in August 2024 was 2.22%, which was 0.06% lower than the rate recorded in August 2024 (2.28%).

“This means that in August 2024, the rate of increase in the average price level is lower than the rate of increase in the average price level in July 2024”.