The Federal Competition and Consumer Protection Commission (FCCPC) has revealed how cartels in the poultry and packaging industries manipulate the market to keep prices high.
Tunji Bello, FCCPC’s executive vice-chairman and chief executive officer (CEO), spoke on Wednesday during a stakeholders’ meeting in Uyo, Akwa Ibom state’s capital city.
In a statement posted on X, Bello said the meeting was part of the FCCPC’s ongoing nationwide advocacy against exploitative pricing in the market.
He said the unfair practice is common in the retail segment of the distribution chain where certain market associations are involved in price-fixing to the detriment of consumers.
The FCCPC CEO said the poultry cartel consists of two big players who dictate the price smaller traders can sell their products.
Bello said the players invested heavily and expanded their operations, giving them control over the market.
“The small poultry owners used to sell a day-old chick for between N480 and N590 and they still made a profit,” he said.
“But not after the arrival of two big players in the market. I choose to withhold their names at this point.
“They (big players) brought in big money and expanded the market and expectedly they were soon in a position to control 80 to 90 percent of the poultry market in the city.”
Bello explained that the two poultry companies used their financial power to take over the local poultry farmers’ association, dictating that a day-old chick must now sell for N1,350.
The CEO said the manipulative act is the reason prices remain high — despite the government’s efforts to support the poultry industry.
He said the federal ministry of agriculture and food security has provided farmers with broilers, vitamins, feeds, and cash assistance across the six geopolitical zones over the past year.
But despite this, prices of poultry products have continued to skyrocket, the FCCPC boss said.
“For instance, starter mash which sold for N11,000 in October 2023 rose to N14,000 in January this year, N16,500 in March, N21,500 in July, and N23,500 in October,” the statement reads.
Bello also blamed the issue of high prices of drinks on the “unfair pricing” determined by a cartel in the packaging sector.
“The cartel in the packaging sector consists of five big players who are in the business of importing and providing local manufacturers with packaging materials,” the CEO said.
“They operate in a mafia-like fashion such that if you choose to leave one of them to check the price of the other, before you would reach the next factory, the first seller would have tipped off the second seller to quote the same price.”
The CEO said the commission prefers to begin with a dialogue “in the spirit of democracy”, rather than enforcing the FCCPC Act, which stipulates heavy fines and imprisonment.
He added that President Bola Tinubu has introduced several relief measures to ease the impact of the country’s ongoing economic reforms.
Bello advised businesspersons to share the benefits of the relief measures with consumers by reducing prices.
On October 29, the FCCPC had said online banking service disruptions violate consumer rights.
The agency said the disruptions, which have hindered customers from accessing their funds and carrying out essential transactions, have negatively impacted millions.
