The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns about a ‘cartel’ that is manipulating market prices across Nigeria, inflating costs for goods and services despite government stabilization efforts.

During a stakeholder engagement in Uyo, Akwa Ibom State, FCCPC Chief Executive Officer Tunji Bello revealed that the commission’s investigations in major cities have uncovered troubling practices in several sectors.

In the poultry sector, Bello highlighted how influential players are dictating prices, severely impacting smaller producers. He explained that the entry of two major market players has allowed them to control 80 to 90 percent of the sector, using their financial clout to mandate that day-old chicks be sold at ₦1,350, contradicting the economic principle of lower prices with increased production.

Bello emphasized that this manipulation is why prices remain high despite various government interventions to support poultry farmers, including the provision of broilers, vitamins, feeds, and cash.

The FCCPC CEO also pointed to exploitative pricing in the packaging sector, citing a cartel of five dominant players responsible for importing and supplying packaging materials. He described their operations as “mafia-like,” with players coordinating to ensure uniform pricing.

Regarding the lack of sanctions, Bello explained that the FCCPC initially opts for dialogue before enforcing the law, which carries severe penalties including hefty fines and jail time.

To alleviate the economic burden on consumers, Bello noted that President Bola Tinubu has introduced several relief measures, such as the removal of tariffs on food imports, VAT on pharmaceuticals and medical devices, tax waivers for businesses and public transport, and facilitating easy credit for converting vehicles from petrol to CNG.

Bello urged the business community in Akwa Ibom to collaborate with the FCCPC to tackle exploitative pricing and promote market integrity, stating that it is only fair for businesses to share the benefits of these government measures with consumers through reduced prices.