*Tunji Bello, Executive Vice-Chairman and CEO of Nigeria’s Federal Competition and Consumer Protection Commission, at a recent stakeholder engagement in Akwa Ibom State, sounds the alarm on a 鈥榗artel鈥� of big players manipulating market prices nationwide, inflating costs of products and services despite the government’s stabilisation efforts

Isola Moses | 绿帽献妻

Against the backdrop of persistent soaring inflation consumers have continued to bear on products and services in the economy, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has disclosed its recent investigation revealed a cartel of some “big players”, especially in the poultry and packaging sectors, responsible for unhealthy trade practices in the country.

绿帽献妻 reports Mr. Tunji Bello, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC, who noted this while addressing stakeholders at a recent one-day engagement on exploitative pricing in Uyo, Akwa Ibom State capital, sounded the alarm on a 鈥榗artel鈥� manipulating market prices nationwide, inflating costs for goods and services despite government stabilisation efforts.

In respect of the menace of price fixing in the poultry subsector, Bello highlighted how influential players are dictating prices, severely impacting smaller producers in the industry.

He told the stakeholders in Uyo: “Small poultry owners previously sold a day-old chick for between N480 and N590 and still made a profit.

“However, the entry of two major market players changed that”, though choosing to withhold their names for now.

According to the Commission, these major entities injected substantial capital into the market, ultimately controlling 80 to 90 percent of the poultry sector in Nigeria.

Bello stated: “These big players used their financial clout to hijack the local poultry farmers鈥� association, mandating that day-old chicks be sold at N1,350, which contradicts the economic principle that greater production typically lowers prices.”

He further emphasised that manipulation by the cartel is the reason why prices remain high despite various governmental support initiatives for the poultry industry in the country.

It is equally noted that over the past year, the Federal Ministry of Agriculture and Food Security has assisted poultry farmers with broilers, vitamins, feeds, and cash through numerous interventions across Nigeria鈥檚 six geopolitical zones to ensure product availability as and affordability.

Referring to exploitative pricing in the packaging sector, the FCCPC Chief as well cited a cartel of five dominant players responsible for importing and supplying packaging materials.

He averred: “They operate in a mafia-like manner. If you attempt to negotiate with one, they tip off the others, ensuring uniform pricing.”

Why no decisive sanctions against culprits?

On the apparent lack of sanctions against these sharp practices in recent times, Bello explained that the FCCPC initially opted for dialogue in the spirit of democracy rather than enforcing the act, which carries severe penalties, including hefty fines and jail time.

The EVC/CEO of FCCPC, therefore, urged the business community in Akwa Ibom State to collaborate with the market regulatory Commission to tackle exploitative pricing and promote market integrity in the Nigerian economy.

Measures to alleviate economic hardship of consumers

In a bid to further cushion effects of the current economic economic burden on Nigerian consumers, Bello noted President Bola Ahmed Tinubu has introduced several relief measures.

He stated these include the removal of tariffs on food imports, Value-Added Tax (VAT) on pharmaceuticals and medical devices, tax waivers for businesses and public transport, and facilitating easy credit for converting vehicles from petrol to CNG.

Bello said: “It is only fair that our businessmen and traders share the benefits of these measures with consumers through reduced prices.”

Earlier in his remarks at the forum, Dr. Abdullahi Adamu, Executive Commissioner for Operations at FCCPC, had urged stakeholders to provide suggestions to address cartel activities and improve the market situation in the country.

There are several other speakers at the event, who expressed concern about the high cost of doing business in Nigeria.

Some other participants as well cited rising interest rates, multiple taxation, and increased electricity tariffs as significant challenges businesses and Nigerian consumers face in the country’s economy.

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