The Federal Competition and Consumer Protection Commission (FCCPC) has alerted the public to a cartel manipulating market prices across Nigeria, causing a surge in goods and services costs despite government efforts to stabilize prices.
During a recent one-day event in Uyo, Akwa Ibom State, FCCPC CEO Mr. Tunji Bello informed stakeholders about findings from the commission’s investigations in key cities. He highlighted that major players in several industries are setting prices to control markets, pushing smaller producers out and creating unfair conditions.
In the poultry industry, Bello noted that powerful players are driving up prices, making it harder for smaller producers to compete. “Small poultry farmers used to sell day-old chicks at prices between N480 and N590 and still made profits. But with the entry of two large players, this has changed,” he said, choosing not to name the companies involved.
According to Bello, these companies invested heavily, allowing them to control around 80 to 90 percent of the poultry market.
“These big players used their financial influence to take control of local poultry associations, setting a price of N1,350 for a day-old chick, defying normal economic principles that more production should lower prices,” he explained.
This manipulation, he stressed, is why prices have stayed high despite government support for the poultry industry. The Federal Ministry of Agriculture and Food Security has provided assistance to poultry farmers with resources like broilers, vitamins, feeds, and cash in various parts of Nigeria over the last year.
Bello also described exploitative practices in the packaging industry, involving a cartel of five major companies that import and distribute packaging materials. He revealed that these companies work together to set uniform prices.
“They operate in a coordinated manner. If you try negotiating with one, they alert the others to keep the prices aligned,” he said.
When asked about the FCCPC’s approach to handling these practices, Bello noted that the commission first seeks dialogue to promote democratic solutions rather than immediate penalties. The FCCPC Act allows for strong penalties, including fines and jail terms, but the commission tries to foster cooperation before resorting to legal enforcement.
Bello encouraged the Akwa Ibom business community to work with the FCCPC to curb exploitative pricing and maintain market fairness.
To ease the economic strain on consumers, Bello mentioned that President Bola Tinubu has introduced various relief measures. These include removing tariffs on food imports, waiving VAT on pharmaceuticals and medical devices, providing tax waivers for certain businesses, and supporting easier access to credit for converting vehicles from petrol to compressed natural gas (CNG).
“It’s only fair for our business people to share the benefits of these relief measures by reducing prices for consumers,” Bello stated.
Many speakers at the event voiced their concerns over the rising costs of doing business in Nigeria, with particular emphasis on increased interest rates, multiple forms of taxation, and rising electricity costs as significant challenges.
In an earlier address, FCCPC’s Executive Commissioner for Operations, Dr. Abdullahi Adamu, encouraged stakeholders to share ideas for tackling cartel activities and improving Nigeria’s market conditions.
