The Federal Competition and Consumer Protection Commission (FCCPC) recently raised concerns over a cartel believed to be manipulating market prices across Nigeria, despite government efforts to keep costs stable. This cartel’s actions are suspected of inflating prices for essential goods and services, affecting both consumers and small businesses.
During a one-day meeting in Uyo, Akwa Ibom State, focused on exploitative pricing, FCCPC CEO, Mr. Tunji Bello, shared findings from investigations into pricing practices in several major cities. Bello cited the poultry sector as an example, explaining that larger companies have taken over the market, driving prices up.
“Previously, small poultry farmers could sell a day-old chick for around N480 to N590 with a profit,” Bello noted. “But with the entry of two big players, who now control 80-90% of the industry, the price has jumped to N1,350. Typically, greater production leads to lower prices, but here, we see the opposite.”
According to Bello, this manipulation keeps prices high, even though the government has provided support to boost poultry production. Over the last year, the Federal Ministry of Agriculture and Food Security has distributed broilers, vitamins, feed, and financial aid to farmers in Nigeria’s regions to help lower production costs.
Bello also highlighted similar tactics in the packaging sector, where a cartel of five major suppliers has pushed up prices. “They operate like a tightly coordinated group,” he said. “If you try to negotiate with one, they alert the others, ensuring prices remain unchanged.”
In response to questions about penalties, Bello explained that the FCCPC prefers an approach of dialogue first, though they have the authority to impose fines and jail terms for unfair market practices if necessary.
To ease economic strain on consumers, Bello pointed to relief measures introduced by President Bola Tinubu, including the removal of tariffs on food imports, VAT exemptions on medical supplies, tax breaks for businesses, and easier credit for converting vehicles to CNG. “It’s only fair that business owners pass these benefits on to consumers through lower prices,” Bello stressed.
The event also highlighted broader challenges faced by businesses, such as high interest rates, multiple taxes, and rising electricity tariffs. FCCPC’s Executive Commissioner for Operations, Dr. Abdullahi Adamu, urged stakeholders to offer ideas for addressing cartel activity and improving market fairness, calling for joint efforts to ensure that government relief reaches all Nigerians.
