FCCPC Exposes Price Manipulation in Nigeria's Poultry and Packaging Sectors, Urges Fairer Pricing
The Federal Competition and Consumer Protection Commission (FCCPC) has exposed alleged price manipulation within Nigeria's poultry and packaging sectors. According to FCCPC's Executive Vice Chairman and CEO, Mr. Tunji Bello, some major players in these industries have set up practices to keep prices artificially high, despite government support to stabilize costs.
Speaking at a stakeholders’ meeting in Uyo, Akwa Ibom State, Mr. Bello explained that large poultry companies have created an environment where smaller producers are compelled to adopt higher pricing. “Smaller poultry owners used to sell a day-old chick for N480 to N590 with a fair profit margin,” he noted, “but with two large companies controlling up to 90 percent of the market, prices have spiked.” He highlighted that the price for a day-old chick has risen to N1,350, counteracting the expectation that increased production would lead to lower prices. This price hike persists even as the Federal Ministry of Agriculture and Food Security provides funding and resources to help reduce costs.Mr. Bello also pointed to similar practices within the packaging sector, where five major firms allegedly coordinate prices, making it difficult for buyers to obtain varied quotes. “If you seek a quote from one supplier, the others often match that price,” he said, describing this behavior as reminiscent of a cartel.
The FCCPC Act allows for penalties and jail sentences for anti-competitive practices, though the commission has opted for dialogue to encourage fairer pricing. Mr. Bello urged businesses in Akwa Ibom to collaborate with the FCCPC to curb exploitative pricing and foster a more balanced market environment.
Additionally, Mr. Bello praised recent economic relief measures implemented by President Bola Tinubu, such as reduced import duties on food, VAT exemptions on medications, and corporate tax waivers. He added, “It’s only fair that businesses reflect these gains in lower prices for consumers.”
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