The Federal Competition and Consumer Protection Commission has identified hoarding, price fixing, and entrance levies by some market associations as major causes of food inflation in Nigeria.
FCCPC Executive Vice Chairman/CEO, Tunji Bello, highlighted these issues during a town hall meeting with stakeholders in Kano.
Bello explained that “unscrupulous actors” involved in hoarding and artificially inflating food prices are contributing to the rise in costs. He stated that such practices violate the FCCP Act 2018, specifically under sections 18(3)(c), 62, 63, 66(1), and 108, which impose penalties such as heavy fines or jail time for offenders.
“With time, all the bad eggs engaged in hoarding, artificial market creation, price fixing, and gouging, will be checkmated by the government,” Bello said.
He also mentioned that FCCPC investigators found some produce merchants stockpiling newly harvested grains and selling them at higher prices or smuggling them across borders. “These actors, without caring for the consequences on fellow Nigerians, hoard food and smuggle it out to sell at a premium,” Bello stated.
However, Bello was clear that not all market participants are guilty. “We are by no means saying everyone is involved. Only a few bad eggs are engaged in unethical practices. It is our collective responsibility to ensure fair pricing, especially now that the country is undergoing economic reforms,” he said.
Bello urged stakeholders in Kano to work together to curb these practices for the national interest. He noted that the Federal Government, under President Bola Tinubu, had already responded to some of the concerns raised by market leaders, such as removing Value Added Tax and excise duties on pharmaceutical products and public transportation.
“We have a very listening President. He feels the pain of the people and has taken steps like removing certain taxes to ease the burden on micro, small, and medium enterprises,” Bello said.
Bello encouraged transport operators to pass on the benefits of government concessions, like easy loans for converting vehicles to cheaper Compressed Natural Gas, to consumers. “When the government assists with cheaper fuel alternatives, we don’t expect the operators to charge the same fare as those using petrol,” he added.
The FCCPC’s engagement with stakeholders continues as it seeks to tackle inflation and ensure consumers are not exploited.
