Exposed: FCCPC Uncovers Cartels Inflating Prices Of Goods

The practices of a cartels inflating prices of goods in Nigeria and making things difficult for the common man, has come to the open eventually.

The news was broken today by Federal Competition and Consumer Protection Commission (FCCPC) which said the cartel’s activities were clearly undermining the efforts of the federal government to make life better for Nigerians.

FCCPC Chief Executive Officer, Mr. Tunji Bello, while speaking at a one-day engagement programme on pricing in Nigeria, which held at Uyo, Akwa Ibom State, also listed the sectors where the cartels inflating prices were active.

He cited the packing and poultry sector, as two sectors with Cartels Inflating Prices, adding however that  they have locations in different areas of the country.

“Small poultry owners previously sold a day-old chick for between N480 and N590 and still made a profit. However, the entry of two major market players changed that,” he said.

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“These big players used their financial clout to hijack the local poultry farmers’ association, mandating that day-old chicks be sold at N1,350, which contradicts the economic principle that greater production typically lowers prices,” he added.

Bello said the cartels were entrenched in the economy by controlling about 80 to 90 percent of the poultry sector, stating that a similar exploitative scenario was playing out in the packaging sector of the economy.

“They operate in a mafia-like manner. If you attempt to negotiate with one, they tip off the others, ensuring uniform pricing,” Bello stated adding that they had succeeded in frustrating the efforts of the government to make prices affordable for the masses of the country.

Regarding the lack of sanctions against these sharp practices, Bello explained that the FCCPC initially opts for dialogue in the spirit of democracy rather than enforcing the act, which carries severe penalties, including hefty fines and jail time.

The way out lay in the sector operators collaborating with his agency so that the exploitative mercantilist groups could be tamed.

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Commending the Federal Government on its various initiatives including tax waivers on critical items, outright removal of tariffs on food imports, VAT on pharmaceuticals and medical devices, tax waivers for businesses and public transport, he said these would not yield the desire dividends if the Cartels Inflating Prices Of Goods are not contained.

“It is only fair that our businessmen and traders share the benefits of these measures with consumers through reduced prices,” Bello stated.