ABUJA – The House of Representatives on Tuesday called on the Federal Competition and Consumer Protection Commission (FCCPC) to immediately stop unfair business practices targeting Air Peace, Dangote, and other Nigerian businesses by certain foreign companies operating in the country.
The House also mandated the Committees on Aviation, Commerce, and Petroleum (Upstream and Downstream) to investigate the circumstances surrounding predatory pricing practices and unethical business behaviors by foreign airlines and International Oil Companies (IOCs).
The resolutions followed a motion presented on the House floor by Hon. Babajimi Benson during a plenary session in Abuja.
Moving the motion, Hon. Benson noted that Nigerian businesses compete on an international level and within the local market. He highlighted the importance of adhering to international business ethics and standards, such as the United Nations Global Compact, the OECD Guidelines for Multinational Enterprises, and ISO 26000 for social responsibility. These standards require businesses to operate fairly, healthily, and efficiently, ensuring competitive trade practices both domestically and internationally.
He further noted that the Federal Competition and Consumer Protection Act of 2018 was enacted to address restrictive and unfair business practices. This legislation aims to prevent distorted competition and the flagrant abuse of market dominance in Nigeria.
According to him, “A fair and healthy competitive market enhances economic efficiency and safeguards consumer interests and welfare by offering a wide range of high-quality products and services at competitive prices.”
Hon. Benson further explained that some Nigerian businesses have faced harsh and unfair competition in their dealings with foreign counterparts.
He added that before Air Peace Airlines began offering the Lagos-London route for less than one million Naira, foreign airlines such as British Airways, Ethiopian Airlines, and Virgin Atlantic were charging as much as four million Naira for a one-way ticket.
“When Air Peace Airlines started offering tickets at a reduced price, other airlines responded by significantly undercutting Air Peace’s fares, seemingly with the intention of disrupting their London route operations.
Furthermore, the Dangote Oil Refinery and Petrochemicals Company is currently facing obstacles from International Oil Companies (IOCs) in Nigeria. These IOCs are allegedly engaging in unfair business practices, including denying access to crude, thereby jeopardizing Dangote’s operational sustainability.”
“Concerned that international oil companies (IOCs) often sell crude oil to Dangote Refinery at significantly higher prices than the market rate, forcing Dangote to import crude from distant countries like the United States, resulting in increased costs.
Additionally, there is concern that, beyond these predatory pricing tactics and other unethical business practices by foreign airlines and IOCs, Nigerian businesses are facing unfair treatment both domestically and internationally, disrupting their smooth operations.”
“Additionally, there is growing concern that these foreign multinationals are intentionally keeping Nigeria dependent on their services. By exporting crude oil and importing refined petroleum products, they ensure that Nigeria and Sub-Saharan Africa remain trapped in cycles of unemployment and poverty. This strategy benefits these companies by generating wealth for themselves at our expense.”
Hon. Benson emphasized that unfair and disadvantageous business practices have led to the closure of once-thriving enterprises, which previously provided Nigerian customers with better alternatives at more affordable rates.
He further voiced concern that if these practices continue unchecked, Nigerian businesses like Air Peace Airlines will continue to suffer, affecting.
The House also tasked the Committee on Legislative Compliance with ensuring adherence to these directives and stipulated a four-week deadline for reporting back, paving the way for subsequent legislative measures.