FCCPC Unveils Market Cartels Fueling Price Inflation Across Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) has raised alarms over market cartels that are artificially inflating prices of goods and services across Nigeria, undermining government stabilization initiatives.

During a one-day stakeholder engagement in Uyo, Akwa Ibom State, FCCPC CEO Mr. Tunji Bello revealed concerning findings from the Commission’s investigations in key cities. In particular, he highlighted issues within the poultry sector, where influential companies manipulate prices to the detriment of smaller producers. “Previously, small poultry farmers sold day-old chicks for between N480 and N590 with reasonable profits,” Bello noted. “But the entry of two major players drastically altered this dynamic,” he added, refraining from naming these companies.

These companies, he explained, injected significant capital and now control 80 to 90 percent of the poultry market, effectively setting prices by commandeering the local farmers’ association. “They mandated that day-old chicks be priced at N1,350, defying the natural economic trend where larger production usually lowers costs,” Bello continued.

This price manipulation, according to Bello, has kept prices high even as the Federal Ministry of Agriculture and Food Security continues to support poultry farmers through various interventions like feed, broilers, vitamins, and financial aid across Nigeria’s six geopolitical zones.

Bello also highlighted exploitative pricing in the packaging industry, where a cartel of five major importers tightly controls the supply of packaging materials. “They operate like a mafia. If you attempt to negotiate with one, the others are immediately informed, ensuring price consistency,” Bello remarked.

Addressing enforcement, Bello explained that the FCCPC initially prioritizes dialogue with businesses in the spirit of democracy, reserving harsher penalties for severe infractions. He encouraged Akwa Ibom’s business community to collaborate with the FCCPC in curbing exploitative practices.

To alleviate the financial burden on consumers, Bello noted President Bola Tinubu’s introduction of relief measures, such as the elimination of tariffs on food imports, VAT exemptions on pharmaceuticals and medical devices, tax breaks for certain businesses and public transport, and facilitating credit for converting vehicles to compressed natural gas (CNG).

“It is only fair that our business sector reflects these benefits in consumer prices,” Bello emphasized.

Several speakers voiced their concerns over the rising costs of doing business in Nigeria, including high interest rates, multiple taxation, and escalating electricity tariffs.

Dr. Abdullahi Adamu, FCCPC’s Executive Commissioner for Operations, invited attendees to propose strategies to combat cartel behavior and improve market conditions.