Concerned by the unjust business practices perpetrated by some foreign businesses operating in Nigeria against local businesses, the House of Representatives has directed the Federal Competition and Consumer Protection Commission (FCCPC) to look into the issue.
This is as the house also directed its relevant committees to investigate the circumstances surrounding the exploitative pricing practices and unethical business competitive behaviours by foreign airlines and IOCs operating in the country.
This followed a motion brought to the floor of the House on the need to investigate exploitative and predatory pricing practices against Nigerian businesses by their foreign counterparts operating in Nigeria by Hon. Babajimi Benson (APC, Lagos).
Benson said Nigerian businesses operate in the International sphere and compete with similar business ventures operating in Nigeria.
According to him, International Business ethics and standards like the United Nations Global Compact, OECD Guidelines for Multinational Enterprises, and ISO 26000 for social responsibility, among others, require businesses to operate in a fair, healthy, and efficient manner while ensuring competitive trade practices in the operation of their businesses at home and abroad.
He explained that to ensure this practice, the Federal Competition and Consumer Protection Act, 2018 was enacted to curb restrictive and unfair business practices capable of leading to distorted competition or flagrant abuse of dominant position of market power in Nigeria.
He stressed that a fair and healthy competitive market promotes economic efficiency and protects the interest and welfare of consumers by providing wide options of high-quality products and services at competitive prices.
He maintained that some Nigerian businesses have suffered harsh and unfair competition and business relations with their foreign business counterparts.
He drew an example from the Air Peace experience saying, “Prior to the commencement of the Lagos London route by Air Peace Airlines below one million Naira, foreign airlines like British Airways, Ethiopian Airlines, Virgin Atlantic, etc. sold their one-way air tickets for as high as four million Naira.
“As soon as Air Peace Airlines commenced the sale of their tickets at a lower price, other airlines dropped their prices far below that of Air Peace Airlines, supposedly with the intention of frustrating Air Peace Airlines’ London route operations.
“Dangote Oil Refinery and Petrochemicals Company is also currently being frustrated by International Oil Companies (LOCs) in Nigeria by denying them crude and other unfair business practices, thereby threatening its survival.
“Whenever they agree to sell crude to Dangote Refinery, the IOCs sell at high premium prices far above the market price, thereby forcing Dangote to import crude from countries as far as the United States, with its attendant high costs.
“Apart from these predatory pricing practices and other unethical business practices adopted by the foreign airlines and OCs, Nigerian businesses have also been subjected to other unfair treatment both home and abroad in an effort to disrupt their smooth operation.
“It appears that the objective of these foreign multinationals is to ensure Nigeria remains at their mercy by patronizing only their services or exporting crude oil and importing refined petroleum products, thereby making Nigeria and Sub-Saharan Africa perpetually facing unemployment and poverty, while they create wealth for themselves at our expense.
“These acts of unfair and unfavourable business have led to the closure of some erstwhile thriving businesses that provided better alternatives to Nigerian customers at cheaper prices.
“If this remains unchecked, Nigerian businesses like Air Peace Airlines will continue to suffer these unfair competitive practices that will adversely affect their operation and the ability of customers to get quality services at affordable prices.”
