FG warns business owners against manipulating prices
The Federal Competition and Consumer Protection Commission has expressed worries about a 'cartel' manipulating market prices nationwide, resulting in increased costs for goods and services, despite government efforts to stabilize the economy.
This information was shared by Mr. Tunji Bello, the Chief Executive Officer of the FCCPC in Akwa Ibom State, during a one-day session focused on exploitative pricing in Uyo, as reported by The Punch.
Bello stated that investigations conducted in key cities have uncovered concerning pricing practices.
He called on stakeholders to tackle these matters to safeguard consumers and ensure fair competition.
In the poultry industry, Bello pointed out that influential entities are controlling prices, which has a significant effect on smaller producers.
He mentioned that small poultry farmers previously sold day-old chicks for a certain price range while still making a profit.
However, the arrival of two significant market players—whose identities he kept confidential—has disrupted this equilibrium.
Bello explained that these entities have invested a considerable amount of money into the market, now commanding 80 to 90 percent of the poultry sector, resulting in exploitative pricing practices harmful to smaller operators.
"These large players have used their financial power to take over the local poultry farmers’ association, insisting that day-old chicks be sold at N1,350, which is against the economic principle that higher production usually leads to lower prices," he added.
Bello stressed that the manipulation by major players is a primary factor for the persistent high prices, despite various government support programs for the poultry sector.
Over the last year, the Federal Ministry of Agriculture and Food Security has assisted poultry farmers with broilers, vitamins, feeds, and cash through interventions in all six geopolitical regions of Nigeria.
He also pointed out exploitative pricing in the packaging industry, disclosing that a cartel of five leading players dominates the import and supply of packaging materials, further driving up costs.
"They function in a mafia-like fashion. If you try to negotiate with one, they inform others, ensuring consistent pricing," Bello noted with concern.
Regarding the absence of penalties for these exploitative behaviors, Bello explained that the FCCPC prefers to start with dialogue, emphasizing a democratic approach instead of immediately enforcing the law, which includes significant fines and potential imprisonment.
He urged the business sector in Akwa Ibom to partner with the FCCPC in combating exploitative pricing and enhancing market integrity, stressing the necessity of collective efforts to promote fair practices.
To alleviate the financial strain on consumers, Bello pointed out various relief initiatives introduced by President Bola Tinubu.
These initiatives comprise the removal of tariffs on food imports, the elimination of VAT on pharmaceuticals and medical equipment, tax waivers for businesses and public transport, and provisions for easy credit to transition vehicles from petrol to compressed natural gas.
These actions aim to reduce costs and assist consumers facing economic difficulties.
"It is only right that our businessmen and traders share the advantages of these measures with consumers by lowering prices," Bello stated.
Several speakers at the gathering expressed their worries about the escalated cost of doing business in Nigeria, citing rising interest rates, excessive taxation, and higher electricity tariffs as major obstacles that impede growth and profitability for businesses in the country.
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