FCCPC investigates steel manufacturing firms in Lagos, Ogun

The Federal Competition and Consumer Protection Commission (FCCPC) has visited three steel manufacturing firms in Ogun and Lagos States to investigate alleged production of substandard iron rods and alleged involvement in other trade anti-competition practices.

The affected companies are African Foundries Limited (AFL), Ogijo, Lagos; the Monarch Steel Mill Limited, Sagamu, Ogun, and the Kam Steel Integrated Company, Sagamu, Ogun State.

The Acting Executive Vice Chairman of FCCPC, Adamu Abdullahi, who led the operation, told journalists on Friday at the premises of AFL, that the agency’s visit to the three companies was informed by intelligence that they might be involved in unfair and anti-competitive practices.

The visit was a joint operation of FCCPC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC), National Information Technology Development Agency (NITDA), and the Nigeria Police Force (NPF).

Mr Abdullahi said the team was there to take samples of their products and examine their records to determine what they do.

“There have been reports of false, misleading, deceptive as well as unfair market practices. Some manufacturers would produce 10mm iron rods but label and market the same as 12mm iron rods. This practice is among the major causes of building collapse in Nigeria.

“We are talking about the issue of safety of Nigerians, which is the core essence of consumer protection. We have to ensure the safety of our population. What is happening in the building space is worrisome to the government and all well-meaning citizens. So, we have to look at their process to find out if they are cutting corners. If they are doing so, we will apply the full wrath of the law. That is why we are here,” he said.

Commenting on the companies’ attitude during the fact-finding mission, Mr Abdullahi said all three companies were very cooperative with the commission.

“That is why we had no issues. Naturally, we would expect that their lawyers would have advised them that our laws allow this process,” he added.

He emphasised that the FCCPC was still at the fact-finding stage and was yet to find any of the companies liable.

“We are still at the information gathering stage after which we have to go back to our office and allow forensic experts to look at the information that we returned with. Whatever they take out from all the materials we have gathered will then guide our findings,” he said.

Mr Abdullahi revealed that the agency was working in collaboration with the Standard Organisation of Nigeria (SON), Manufacturing Association of Nigeria (MAN) and the Nigerian Society of Engineers (NSE), to ensure compliance with industry standards.

“We have held meetings with them and they have given us technical advice on what we should look out for during these fact-finding trips. And that is exactly what we are doing,” he added.

In recent times, building experts have expressed concern that the presence of low-quality steel and iron rods in the markets and their subsequent use in building projects are partly responsible for incessant building collapses and structural failures across the country.

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Earlier in June, the Iron Rod and Steel Distributors Employers Union of Nigeria (IRSDEUN) issued a strong call to action to the Federal Government, urging it to crack down on substandard steel producers.

This was in the aftermath of another building collapse that left five construction workers dead in Obingwu, Ukwa West local government area of Abia State.

The National President of the Union, Gbenga Awoyale, noted that “the unchecked proliferation of substandard iron rods and steel products in the market has led to a series of tragic incidents, including the recent collapse in Abia State.” He emphasized the need for the government to take decisive action to prevent further loss of lives.

Also, in 2023, the House of Representatives ordered the Standard Organisation of Nigeria (SON) to crack down on the spread of substandard steel production in the country, as stipulated in section (4) subsection (l) of the SON Act, 2015.

The House also urged the FCCPC to take decisive action to eradicate the dangers occasioned by the production of low-quality steel from the markets.