The Federal Competition and Consumer Protection Commission (FCCPC) has raised an urgent alarm about a cartel inflating prices of goods and services across Nigeria.
At a recent engagement in Uyo, Akwa Ibom State, FCCPC Chief Executive Officer Tunji Bello revealed shocking findings from the commission’s investigations into market practices.
According to Bello, the commission has uncovered manipulative tactics by major market players in key sectors, particularly poultry and packaging.
“We have found a cartel that is controlling prices, and this is severely affecting smaller producers,” Bello said, stressing the impact on local economies.
In the poultry sector, Bello pointed out that smaller poultry owners used to sell a day-old chick for between N480 and N590, allowing them to make a profit.
However, the entry of two influential market players has drastically changed this scenario.
“Now, those same chicks are being sold at N1,350 because these big players control 80 to 90 percent of the poultry market,” Bello explained.
These major entities injected substantial capital into the market, leading to a drastic price increase that contradicts basic economic principles.
He highlighted the troubling trend where these large companies hijacked the local poultry farmers’ association.
“They have imposed their pricing strategies, forcing smaller farmers out of the market,” he lamented.
Despite the Nigerian government’s efforts to stabilize the poultry sector through various interventions, prices remain high due to these exploitative practices.
Bello emphasized that the Federal Ministry of Agriculture and Food Security has been providing assistance to poultry farmers across Nigeria.
“Support has included broilers, vitamins, feeds, and cash interventions,” he said.
However, these efforts are undermined by the manipulation of prices by the cartel.
The situation is similar in the packaging sector, where Bello pointed to a cartel of five dominant players controlling the import and supply of packaging materials.
“They operate like a mafia. If you negotiate with one of them, they inform the others, ensuring uniform pricing across the board,” Bello stated.
The lack of sanctions against these practices remains a concern for the FCCPC.
Bello explained that the commission prefers to engage in dialogue rather than impose severe penalties initially.
“The law does provide for heavy fines and imprisonment, but we believe in a democratic approach first,” he said.
Bello called on the business community in Akwa Ibom to work collaboratively with the FCCPC to combat these exploitative pricing practices.
“To promote market integrity, we need your cooperation,” he urged.
In light of the economic challenges faced by consumers, President Bola Tinubu has introduced several relief measures aimed at alleviating the burden on citizens.
These measures include the removal of tariffs on food imports, VAT exemptions on pharmaceuticals and medical devices, tax waivers for businesses, and support for converting vehicles from petrol to compressed natural gas (CNG).
“It is only fair that our businessmen and traders share the benefits of these measures with consumers through reduced prices,” Bello insisted.
The engagement event highlighted significant concerns from various speakers about the high cost of doing business in Nigeria.
They pointed out rising interest rates, multiple taxation, and increasing electricity tariffs as major hurdles for businesses.
Dr. Abdullahi Adamu, the Executive Commissioner for Operations at the FCCPC, also addressed the stakeholders during the event.
He urged them to provide suggestions on how to combat cartel activities and improve market conditions.
“Your input is crucial in finding effective solutions to these challenges,” Adamu stated.
The issue of price inflation is not new to Nigerians, who have been grappling with rising costs for several essential goods and services.
Consumers across the country have expressed frustration over the continued increase in prices, which often outpace their incomes.
Bello’s revelations come at a critical time when many Nigerians are already feeling the impact of economic policies and inflationary pressures.
The FCCPC’s findings about the cartel manipulating prices may shed light on the broader economic issues plaguing the nation.
It raises important questions about the state of competition in Nigerian markets and the ability of smaller businesses to survive in an increasingly challenging environment.
As the FCCPC continues its investigations, the commission is expected to implement strategies aimed at dismantling these cartels and restoring fairness in the market.
However, the effectiveness of these efforts will depend on the cooperation of both businesses and consumers in holding unfair practices accountable.
The public’s response to these developments will also be critical in shaping the future of consumer rights and market integrity in Nigeria.
As the economy struggles to recover from previous downturns, the importance of fair pricing and competition cannot be overstated.
Consumers have a right to demand transparency and fairness in pricing, and the FCCPC is committed to ensuring that these rights are upheld.
With continued collaboration between the government, businesses, and consumers, there is hope for a more equitable market environment.
