Nigeria’s Consumer Watchdog Targets ‘Cartel’ Price Manipulation

The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over an alleged ‘cartel’ distorting Nigeria’s market prices, pushing up costs for goods and services despite government measures to stabilise the economy. Speaking at a one-day engagement on exploitative pricing in Uyo, AkwaIbom State, FCCPC Chief Executive Officer, Mr. Tunji Bello, revealed that investigations have exposed price manipulation across key sectors, impacting consumers nationwide.

In the poultry industry, Bello pointed to major players who have driven up prices, squeezing smaller producers and limiting competition. “Small-scale poultry farmers could once profitably sell a day-old chick for between N480 and N590,” he said. “But with the arrival of two major operators, these prices have skyrocketed to N1,350.” Bello explained that these powerful firms, controlling an estimated 80 to 90 percent of the sector, used their financial weight to capture the local poultry association and impose price mandates—going against standard economic principles, where increased production should generally reduce costs.

Bello attributed persistently high poultry prices to these practices, even as the Federal Ministry of Agriculture and Food Security has stepped in over the past year to aid poultry farmers across the nation with essential resources like broilers, vitamins, and feed.

Turning to the packaging sector, Bello disclosed a similar scheme, describing a cartel of five dominant importers and suppliers who maintain strict price uniformity. “They operate almost like a mafia,” Bello remarked, noting that if one supplier is approached for a price negotiation, others are immediately notified to enforce consistent pricing.

Despite these issues, Bello said that the FCCPC favoursdialogue over sanctions to encourage compliance, although the commission has the power to impose significant fines and even jail terms under existing legislation. He urged businesses in Akwa Ibom to support the FCCPC’s efforts, joining in the fight against exploitative practices to build a fairer market.

Bello also highlighted a series of relief measures introduced by President Bola Tinubu to ease economic pressures on consumers, including the removal of tariffs on food imports, VAT exemptions for medical products, tax waivers, and expanded access to credit for converting vehicles to compressed natural gas (CNG). “It’s only fair that businesses reflect these government initiatives in reduced consumer prices,” Bello stressed.

During the event, industry representatives voiced concerns over Nigeria’s challenging business environment, with rising interest rates, multiple taxes, and escalating electricity tariffs cited as major hurdles. The FCCPC’s Executive Commissioner for Operations, Dr. Abdullahi Adamu, urged stakeholders to suggest additional measures to combat cartel behaviour and improve market dynamics across the country.