UNCOVERED! Hear more about the 5 cartels increasing market prices in Nigeria

• FCCPC has raised the alarm on a cartel manipulating market prices nationwide, causing inflated costs for goods and services despite government efforts
• FCCPC CEO revealed that major market players in the poultry and packaging sectors are using their financial power to control prices
• Bello emphasized the need for collaborative efforts to combat exploitative pricing and uphold market integrity

The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns about a cartel allegedly manipulating market prices across Nigeria.

Despite government efforts to stabilize costs for goods and services, the cartel's activities have led to inflated prices.

FCCPC alerts Nigerians of 5 major cartels driving up goods prices. Photo credit: Alliance Price via Getty Images
Source: Getty Images

During a one-day engagement on exploitative pricing in Uyo, Akwa Ibom State, FCCPC Chief Executive Officer, Mr. Tunji Bello, revealed the commission's findings from major cities.

In the poultry sector, Bello highlighted how dominant players are setting prices, adversely affecting smaller producers.

"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 stated, withholding their names.

Bello explained that these entities invested significant capital, gaining control of 80 to 90 percent of the poultry market.

"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.

This manipulation has kept prices high, despite governmental support from the Federal Ministry of Agriculture and Food Security, which has provided broilers, vitamins, feeds, and cash to poultry farmers over the past year.

Bello also addressed exploitative pricing in the packaging sector, citing a cartel of five dominant players responsible for importing and supplying packaging materials.

"They operate in a mafia-like manner. If you attempt to negotiate with one, they tip off the others, ensuring uniform pricing," Bello lamented.

Regarding the lack of sanctions, Bello explained that the FCCPC prefers dialogue over strict enforcement, which carries severe penalties, including hefty fines and jail time.

He urged the business community in Akwa Ibom to collaborate with the FCCPC to combat exploitative pricing and promote market integrity.

Traders reveal top products in high demand

Meanwhile, Legit.ng earlier reported that most goods in the market now are very expensive due to the negative impact of the coronavirus pandemic on the economy which has has resulted to hike in prices of major goods in market across the state.

The new year is often characterized with hopes and belief of better things to come as against the odds of the previous year, but traders have their expectations, so does the buyers in markets across the state.

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Source: Legit.ng