SB 110: Price Control and Anti Profiteering Bill 2015

Bill Analysis:

BILL ANALYSIS

SHORT TITLE

Price Control (Essential Goods) Bill 2015

OBJECTIVE OF THE BILL

The objective of the Bill is to provide for the mandatory control of the price of essential goods.

NUMBER OF CLAUSES/PARTS

The Bill has 8 clauses, including citation. 

PURPOSE OF THE BILL

The purpose of the Bill is to provide for a legal framework to require the Minister responsible for finance through the Utility Charges Commission to fix the maximum retail and wholesale prices for the essential goods listed below: -

a) Maize

b) Maize flour

c) Wheat

d) Wheat Flour

e) Rice

f) Cooking oil

g) Sugar

h) Diesel

i) Petrol

The Bill provides that efforts by government to use market forces to lower prices of these essential goods have not borne fruit; hence the need for this Bill. Furthermore, controlling the prices of the listed goods is geared towards protecting Nigerians from exploitative businesspersons. The bill is expected to help mitigate the effects of the food shortage ravaging parts of the country.

IMPLICATIONS OF THE BILL

1. When Passed the Bill is expected to: -

• Fix maximum service charge that may be made for any service in relation to any such goods;
• Prohibit any person carrying on any business or gainful occupation specified in order of the Minister responsible for finance, from increasing the price of any goods above the price which was ordinarily charged by him on a date or during a period specified in the order;
• Prescribe the type of packing, weight, size, quality, marking and the processing and ingredients of any such goods manufactured in Nigeria;  
•  Prescribe the following:
  • Amount of the deposit, which any person selling any price-controlled goods may require in respect of any container; 
  • The amount (not to exceed the amount of the deposit), which such person shall, on return of the container, refund to the person by whom the container is returned; and
  • Conditions subject to which the refund shall become payable.

GENERAL PROVISIONS

1. Power of the Minister to issue an order:

Under Clause 4 of this Bill, the Minister shall exercise the power of issuing an order to fix a maximum price or a minimum service charge for any area of Nigeria, which differs from the maximum price or maximum service charge fixed in respect of like or similar goods or services for another area or other area.

The Minister shall exercise the power to fix a maximum price for goods which includes any charge made for any service, whether a price controlled service or not, rendered in relation to the sale of those goods; and fix a maximum service charge for any service which includes any price or charge for sale of goods, whether price-controlled goods or not, sold in connection with that service.

2. Commencement of the Order:

Every order made by the Minister in accordance with this Bill (when it becomes law) shall come into operation on the day, which it is made, unless a date is specified. Every order shall be published in the Gazette (Clause 5

3. Offences and Penalties: 

Clause 6 provides that any person who sells any price-controlled goods or renders any price-controlled service at a price, which exceeds the maximum price or the maximum service charge as the case may be, commits an offence. A person who purchases or offers to purchase any price-controlled goods or services at a price or charge, which exceeds the maximum price commits an offence. An offence under the Bill (when it becomes law) is punishable with a fine N100,000 or a term of two years in prison.

CONCLUDING ISSUES

The Bill seeks to provide a legal framework for the control of the prices of goods that are essential to the needs of Nigerians. The goods are maize, maize flour, cooking oil or fat, sugar, diesel and petrol. The reason for the Bill as explained in the Memorandum of Objects and Reasons, is that the efforts of the government to use market forces to lower prices and the government exhortations to sellers of essential goods, not to overcharge consumers have been futile.

In terms of structure and content, the Clauses appear vague and difficult to understand; but coherently arranged. A revision is recommended before passage of the Bill.