In a recent move to curb exploitative market practices, the Federal Competition and Consumer Protection Commission (FCCPC) has revealed how cartels in Nigeria’s poultry and packaging sectors manipulate prices to the detriment of small business owners and consumers. FCCPC’s Executive Vice Chairman, Tunji Bello, highlighted these findings during a stakeholder engagement in Uyo, Akwa Ibom State, which forms part of the Commission’s nationwide campaign against unfair pricing.
Through an in-depth investigation, FCCPC discovered that dominant players in the poultry industry set high prices for day-old chicks, forcing smaller farmers to follow suit. Bello shared that while small-scale poultry farmers once sold day-old chicks at a profitable rate of N480 to N590, the arrival of two major players in the market has driven prices up to N1,350 per chick. He noted that these large companies now control 80 to 90 percent of the poultry market, enabling them to manipulate pricing, which keeps costs high for consumers, despite government subsidies aimed at reducing costs.
The FCCPC meeting was attended by industry leaders, MSMEs, market stakeholders, and NGOs. Addressing the gathering, Bello called on the Akwa Ibom business community to support FCCPC’s efforts to regulate prices and reduce the strain on consumers. “Despite government interventions through the Federal Ministry of Agriculture, including subsidies on broilers, feeds, and vitamins, prices for poultry products like starter mash continue to rise, increasing from N11,000 last October to N23,500 by this month,” Bello said.
The packaging sector faces similar challenges, according to Bello. He disclosed that five dominant companies monopolize the market for packaging materials, operating with a mafia-like approach that prevents manufacturers from accessing fair prices. This cartel ensures consistent high pricing across the board, restricting competition and inflating costs for businesses.
Responding to questions on the lack of sanctions against these practices, Bello explained that FCCPC initially opted for dialogue “in the spirit of democracy,” although legal penalties are available under the FCCP Act. He emphasized the need for cooperation with local businesses to dismantle these monopolistic structures.
In response to Nigeria’s ongoing economic challenges, Bello also outlined President Bola Tinubu’s recent relief measures, including the removal of tariffs on food imports and VAT exemptions on pharmaceuticals, along with tax waivers and credit options for public transportation. “It is only fair that our business community reciprocates by passing on these benefits to consumers through reduced prices,” Bello urged.
As FCCPC intensifies its campaign, it aims to protect consumers and support MSMEs across Africa by promoting fair competition and transparent pricing in critical sectors.
