[By Abigail Philip David]
The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered a ‘cartel’ manipulating market prices across Nigeria, driving up costs of goods and services despite government stabilization efforts.
Speaking at a stakeholder engagement on exploitative pricing in Uyo, Akwa Ibom State, FCCPC CEO Mr. Tunji Bello revealed findings from investigations across major cities, exposing concerning practices in various sectors.
In the poultry industry, Bello pointed to influential players setting prices that have hurt smaller producers. “Previously, small poultry farmers sold a day-old chick for between N480 and N590 at a profit. But the arrival of two dominant players changed this,” Bello stated, withholding their names for now.
He explained that these large entities, controlling 80 to 90 percent of the sector, used their financial strength to influence local poultry associations, setting prices for day-old chicks at N1,350—contrary to basic economic principles where greater supply should reduce prices.
Bello noted that this manipulation keeps prices high even as the government has provided support to poultry farmers, including broilers, feeds, vitamins, and financial assistance via the Federal Ministry of Agriculture and Food Security.
In the packaging sector, Bello pointed to five major players who control the import and supply of packaging materials, operating in a ‘mafia-like’ manner. “If you try to negotiate with one, they alert the others, maintaining a uniform pricing structure,” he remarked.
Explaining why no penalties have been enforced, Bello said the FCCPC initially prefers dialogue, opting for democratic solutions before imposing fines or jail sentences as stipulated by law. He urged Akwa Ibom’s business community to partner with the FCCPC in curbing exploitative pricing practices and strengthening market integrity.
In light of the economic strain on consumers, Bello highlighted President Bola Tinubu’s relief measures, including eliminating tariffs on food imports, VAT waivers on pharmaceuticals, tax incentives for businesses and public transport, and accessible credit for converting vehicles to CNG.
“It is only fair that businesses reflect these government measures through lower prices for consumers,” Bello urged.
Participants at the event expressed concerns over Nigeria’s challenging business environment, citing rising interest rates, multiple taxation, and electricity tariffs as key issues.
Earlier, FCCPC’s Executive Commissioner for Operations, Dr. Abdullahi Adamu, invited stakeholders to propose solutions to combat cartel activities and improve market conditions across the country.
