Nigerian Consumer Protection Agency Raids Steel Manufacturers Over Alleged Substandard Products
The Federal Competition and Consumer Protection Commission (FCCPC) has conducted a series of raids on three steel manufacturing companies in Ogun State, investigating allegations of producing substandard iron rods and engaging in anti-competitive practices.
The companies under scrutiny are African Foundries Limited in Ogijo, Monarch Steel Mill Limited in Sagamu, and Kam Steel Integrated Company, also in Sagamu. Dr Adamu Abdullahi, the Acting Executive Vice Chairman of the FCCPC, addressed journalists recently, stating that the commission’s actions were prompted by intelligence reports suggesting potential misconduct.
“Essentially, we received intelligence and surveillance reports that these companies are allegedly involved in anti-competitive behaviour. That is the reason we decided to visit these three companies,” Abdullahi explained.
Further elaborating on the nature of the alleged malpractices, Abdullahi revealed that some manufacturers were producing 10mm iron rods but labelling and selling them as 12mm. “We are here to take samples of their products and review their records to determine if they are engaging in false, misleading, and deceptive practices,” he stated.
Abdullahi highlighted the severe implications of such practices, noting that they significantly contribute to building collapses in Nigeria. “We are concerned about the safety of Nigerians, which is the essence of consumer protection. We need to ensure the safety of our population,” he stressed.
The FCCPC chief affirmed that the commission’s visit aimed to scrutinise the companies’ processes to identify any instances of cutting corners. “If they are, we will enforce the full extent of the law. That is why we are here,” he declared.
Commenting on the cooperation received during the investigation, Abdullahi mentioned that all three companies were cooperative, with their lawyers involved in the process. “Their lawyers were involved, and our laws permit that,” he noted.
However, Abdullahi emphasised that the FCCPC was still in the information-gathering phase and had not yet determined the liability of any of the companies. “We are still collecting information. We will return to our office and allow forensic experts to analyse the gathered materials. Their analysis will guide our findings,” he concluded.
