….say act led to closure of some erstwhile thriving businesses in Nigeria

By Gift ChapiOdekina, Abuja

The House of Representatives on Tuesday urged the Federal Competition and Consumer Protection Commission(FCCPC), to immediately halt the unfair business practices perpetrated against Air Peace, Dangote and other businesses by certain foreign businesses operating in Nigeria.

The House also mandated the Committees on Aviation, Commerce, and Petroleum (Upstream and Downstream) to Investigate the circumstances surrounding the predatory pricing practices and unethical business
competitive behaviours by foreign airlines and IOCs

The resolutions were sequel to a motion moved on the floor of the House by Hon Babajimi Benson during plenary in Abuja.

Moving the motion, Benson noted that Nigerian businesses operate in the International sphere and compete with similar business ventures operating in Nigeria; adding that 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 athome and abroad.

He further noted 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.

According to him, 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.

Benson further explained that some Nigerian businesses have suffered harsh and unfair competition and business
relations with their foreign business counterparts.

He added that 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-wayair 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.

“Moreso, Dangote Oil Refinery and Petrochemicals Company is also currently being frustrated by International Oil Companies (IOCs) in Nigeria by denying them crude and other unfair business practices, thereby threatening its survival operations.

“Concerned that 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.

“Also concerned that apart from these predatory pricing practices and other unethical business practices
adopted by the foreign airlines and IOCs, Nigerian businesses have also been subjected to other unfair treatment both home and abroad in an effort to disrupt their smooth operation.

“Further concerned that 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.

Benson also speaking expressed worries that 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.

He also worried that 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.

The House further mandated the Committee on Legislative Compliance to ensure compliance and report back within four weeks for further
legislative action.