The House of Representatives on Tuesday unveiled plans to investigate exploitative and predatory pricing practices against Nigerian Businesses by their foreign counterparts operating in Nigeria.

The resolution was passed sequel to the adoption of a motion sponsored by Chairman, House Committee on Defence, Hon. Babajimi Benson.

In his lead debate, Hon. Benson laments that Nigerian businesses operate in the international sphere and compete with similar business ventures operating in Nigeria.

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“The House also notes 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 at home and abroad.

“The House further notes that to ensure this practice, the Federal Competition and Consumer Protection Act. 2018 was enacted to curb restrictive and unfair business practices culpable of leading to distorted competition or flagrant abuse of dominant position of market power in Nigeria.

“The House is aware 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.

“The House is also aware that some Nigerian businesses have suffered hursh and unfair competition and business relations with their foreign business counterparts.

“The House is cognizant that prior to the commencement of the Lagos-London route by Air Peace Airlines below one mullion naira, foreign airlines like British Airways, Ethiopian Airlines, Virgin Atlantic, etc. sold their one-way air tickets for as high as N4 million.

“The House is also cognizant that as soon as Air Peace Airlines commenced the sale of thew tickets at a lower pnce, other airlines dropped their prices fur below that of Air Peace Airlines, supposedly with the intention of frustrating Air Peace Airlines’ London route operations.

“The House is further cognizant that Dangote Oil Refinery and Petrochemicals Company is also currently being frustrated by International Oil Companies (OCs) in Nigeria by denying them crude and other unfair business practices, thereby threatening ats survival.

“The House is 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.

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

“The House is 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.

“The House is worried 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.

“The House is also worried that if this remains unchecked, Nigerian businesses hke Air Peace Airlines will continue to suffer these unfair competitive practices that will adversely affect their operation and the ability of customers w get quality services at unaffordable prices.”

In order to checkmate the excesses, the House urged Federal Competition and Consumer Protection Commission (RCCPC), to immediately halt the unfair business practices perpetrated by certain foreign businesses operating in Nigeria.

Hence, the House mandated the joint Committees on Aviation, Commerce, and Petroleum (Upstream and Downstream) as well as Foreign Affairs to investigate the circumstances surrounding the predatory pricing practices and unethical business competitive behaviors by foreign airlines and IOCs and report within four weeks for further legislative tion.

In the same vein, the House mandated its Committee on Legislative Compliance to ensure compliance.

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