The Federal Competition and Consumer Protection Commission has raised concerns about a ‘cartel’ manipulating market prices across the country, leading to inflated costs for goods and services despite government stabilization efforts.
This was disclosed by the Akwa Ibom State, FCCPC Chief Executive Officer, Mr. Tunji Bello, during a one-day engagement on exploitative pricing in Uyo, according to The Punch.
Bello revealed that investigations in major cities have revealed troubling pricing practices.
He urged stakeholders to address these issues to protect consumers and promote fair competition.
In the poultry sector, Bello highlighted that influential players are dictating prices, significantly impacting smaller producers.
He noted that small poultry owners previously sold day-old chicks for between N480 and N590 while still making a profit.
However, the entrance of two major market players—whose names he withheld—has disrupted this balance.
Bello explained that these entities have injected substantial capital into the market, ultimately controlling 80 to 90 per cent of the poultry sector, which has led to exploitative pricing practices detrimental to smaller operators.
“These big players used their financial clout to hijack the local poultry farmers’ association, mandating that day-old chicks be sold at N1,350, which contradicts the economic principle that greater production typically lowers prices,” he added.
Bello emphasized that the manipulation by major players is a key reason prices remain high despite various government support initiatives for the poultry industry.
Over the past year, the Federal Ministry of Agriculture and Food Security has provided assistance to poultry farmers, including broilers, vitamins, feeds, and cash through interventions across Nigeria’s six geopolitical zones.
Additionally, he highlighted exploitative pricing in the packaging sector, revealing that a cartel of five dominant players controls the import and supply of packaging materials, further contributing to inflated costs.
“They operate in a mafia-like manner. If you attempt to negotiate with one, they tip off the others, ensuring uniform pricing,” Bello lamented.
Regarding the lack of sanctions against these exploitative practices, Bello explained that the FCCPC prefers to engage in dialogue first, emphasizing a democratic approach rather than immediately enforcing the act, which includes severe penalties such as hefty fines and imprisonment.
He urged the business community in Akwa Ibom to collaborate with the FCCPC in addressing exploitative pricing and promoting market integrity, highlighting the importance of collective efforts to ensure fair practices.
To ease the economic burden on consumers, Bello highlighted several relief measures introduced by President Bola Tinubu.
These measures include the removal of tariffs on food imports, the elimination of VAT on pharmaceuticals and medical devices, tax waivers for businesses and public transportation, and provisions for easy credit to convert vehicles from petrol to compressed natural gas.
These initiatives are designed to lower costs and support consumers facing economic challenges.
“It is only fair that our businessmen and traders share the benefits of these measures with consumers through reduced prices,” Bello stated.
Several speakers at the event voiced concerns about the high cost of doing business in Nigeria. They highlighted rising interest rates, multiple taxation, and increased electricity tariffs as significant challenges that hinder growth and profitability for businesses in the country.
