Market cartel responsible for high costs of food – FCCPC

Market cartel responsible for high costs of food – FCCPC

The Federal Competition and Consumer Protection Commission (FCCPC) has said that some traders forming cartels in markets across the country are behind the astronomical increase in prices of food items.

The Chief Executive Officer of the Commission, Mr. Tunji Bello, stated this in Lagos on Wednesday while addressing leaders of market associations, transport operators, and service providers at a town hall meeting hosted by the FCCPC.

While acknowledging that the exchange rate and the increase in petrol price make the old prices unsustainable, Bello frowned at disproportionate increases in the prices of food items which he said are often perpetrated by “cartels” to exploit consumers.

Bello said the meeting was necessitated by startling discoveries made by the commission during a survey conducted nationwide.

“We discovered that some traders form cartels in the markets and put barriers in the form of ridiculous membership fees intended to ensure price fixing in the market.  

“Without joining them, they won’t allow anyone to sell goods in the market or provide services. Such practices are against the law and constitute some of the offences the Commission is against,” said the FCCPC boss. 

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• He said the FCCPC chose to first explore the option of dialogue to arrive at a consensus to deal with the growing trend even though sections of the law empower the commission to deal decisively with offenders,

• According to him, section 17 of the FCCPC Act empowers the Commission to eliminate anti-competitive practices, misleading, unfair, deceptive or unconscionable marketing, trading, and business practices.

• It prescribes sanctions including a fine of up to N10 million and a jail term of three years for anyone found guilty by the court.

On the economic outlook, Bello stated that the removal of taxes on imported food items, pharmaceutical products, and transportation was part of measures being taken by the Tinubu administration to cushion the effects of the reforms introduced to reposition the Nigerian economy.

“Such laudable measures by President Tinubu would however be in vain if the benefits are not passed down to the consumers,” he said. 

Also speaking at the event, the Iya Oloja General of Nigeria, Folasade Tinubu-Ojo, echoed these sentiments, urging traders to refrain from exploitative pricing practices. She called on the traders to support the government’s efforts by being considerate in their pricing.

Market cartel responsible for high costs of food – FCCPC