The Federal Competition and Consumer Protection Commission (FCCPC) has attributed the rise in food prices to market cartels formed by traders across the country.
FCCPC Chief Executive Officer, Mr. Tunji Bello, made this revelation during a town hall meeting in Lagos on Wednesday, which was attended by market leaders, transport operators, and service providers.
Bello noted that while factors such as the exchange rate and increased petrol prices have contributed to price hikes, a huge part of the inflation is driven by traders who form cartels to exploit consumers.
These cartels, according to Bello, impose hefty membership fees and set fixed prices, preventing others from entering the market without compliance.
“This practice is illegal and goes against the spirit of fair competition,” Bello stated, adding that the Commission’s recent nationwide survey revealed the extent of the problem.
The FCCPC chief said that while the commission is currently pursuing dialogue to address the issue, the law grants the authority to impose penalties.
According to section 17 of the FCCPC Act, anti-competitive practices and deceptive business activities could result in fines of up to N10 million or a three-year jail term for those found guilty.
Bello also said the government is taking steps to ease the economic burden, including the removal of taxes on imported food, pharmaceutical products, and transportation.
He stressed the importance of passing these benefits on to consumers.
The Iya Oloja General of Nigeria, Folasade Tinubu-Ojo, echoed these concerns and urged traders to avoid exploitative pricing and support the government’s efforts by being more considerate when setting their prices.
