FCCPC Exposes Price Manipulation in Nigeria’s Poultry, Packaging Industries 

Samuel Mobolaji

The Federal Competition and Consumer Protection Commission (FCCPC) has accused cartel groups in Nigeria’s poultry and packaging sectors of artificially inflating prices to the detriment of consumers.

According to the Commission, these cartels have used their influence to undermine government efforts aimed at stabilising prices.

The announcement was made via FCCPC’s X page following a “startling revelation” by CEO Mr. Tunji Bello during a stakeholder meeting in Uyo, which is part of the FCCPC’s ongoing campaign against exploitative pricing practices.

The Commission’s findings were derived from a nationwide investigation, revealing tactics used by dominant players to control market prices.

Bello outlined how a cartel of major poultry producers, which dictates prices to smaller operators, has caused a significant rise in costs. “Previously, small poultry owners sold a day-old chick between N480 and N590, which was profitable,” Bello stated.

“However, two large players, whose names are withheld for now, entered the market with substantial capital, taking control of 80-90 per cent of the local poultry market.”

According to Bello, this control has led to a price increase for day-old chicks, now selling for N1,350, contradicting standard economic principles where increased production typically leads to lower costs. Despite government interventions, including the supply of broilers, vitamins, and feed to poultry farmers, prices continue to rise. Starter mash, for instance, has soared from N11,000 in October 2023 to N23,500 as of October this year.

Additionally, Bello disclosed that high beverage prices in recyclable packaging result from a similar cartel influence in the packaging industry, involving five dominant suppliers who enforce “unfair pricing.” According to him, “these suppliers operate like a mafia, alerting competitors to match prices, effectively stifling any chance for competitive pricing.”

Addressing concerns over enforcement, Bello explained that while the FCCPC favours dialogue over severe penalties, collaboration with local businesses is essential to combat exploitative pricing.

He urged Akwa Ibom’s business community to support the FCCPC’s efforts to foster fair market practices, stressing that “it is only fair that businesses share their gains with consumers through price reductions.”

The FCCPC statement also highlighted recent economic reforms by President Bola Tinubu, including relief measures like tariff removals on food imports, VAT exemptions on pharmaceuticals, and tax incentives for small businesses and public transport.

Additionally, accessible credit options for vehicle conversion from petrol to CNG were mentioned as part of federal policy adjustments aimed at cushioning the economic impact on citizens.

The FCCPC remains committed to monitoring these sectors closely to protect consumers and promote competitive market conditions across Nigeria.