The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered evidence of price manipulation by cartels within the Nigerian poultry and packaging sectors, despite government support aimed at lowering prices.
Poultry And Packaging Cartels Are Influencing Prices – FCCPC Boss
The Executive Vice Chairman and Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, addressed stakeholders at a meeting in Uyo, Akwa Ibom State, as part of the agency’s ongoing campaign against exploitative pricing practices across Nigeria.
Bello claims that big poultry business players have brought about a situation where smaller farmers are under pressure to use exorbitant pricing tactics. According to Bello, “the small poultry owners used to sell a day-old chick for between N480 and N590 and still make a profit.” “But with two large players entering the market, they were soon in a position to control 80 to 90 percent of the poultry market in the city.”
It is alleged that these major players have taken control of the local poultry farmers’ association, resulting in an increase in the price of a day-old chick to N1,350. This action contradicts economic principles, which suggest that increased production should lead to lower prices. The government has provided ongoing support, including the provision of broilers, feeds, and financial aid through the Federal Ministry of Agriculture and Food Security. However, despite these interventions, poultry prices continue to rise. For example, the cost of starter mash has increased from N11,000 in October 2023 to N23,500 by October 2024.
Bello also brought attention to price-fixing in the packaging sector. The packaging industry cartel is made up of five powerful companies that manipulate prices in a way akin to that of a mafia. Bello stated, “The first seller would have already notified the next to quote the same price if you tried to check the price with another supplier.”
Although the FCCPC Act permits penalties and jail sentences for such actions, the FCCPC has chosen to promote fair practices through conversation. In order to stop exploitative pricing and advance market integrity, Bello asked companies in Akwa Ibom to collaborate with the FCCPC.
Bello also mentioned the economic relief measures that President Bola Tinubu has put in place, such as tax breaks for businesses, the removal of VAT on pharmaceuticals, and lower import duties on food. “It is only fair that our businessmen and businesswomen share such gains with consumers in the form of reduced prices,” Bello stated.
