FCCPC uncovers price-fixing cartels in poultry, packaging sectors
By Kunle Sanni
The Federal Competition and Consumer Protection Commission (FCCPC) has exposed how cartels in Nigeria’s poultry and packaging sectors are artificially inflating prices through market manipulation.
FCCPC’s Executive Vice-Chairman and CEO, Tunji Bello, shared these findings on Wednesday during a stakeholders’ meeting in Uyo, Akwa Ibom State. In a statement on X (formerly Twitter), Bello noted that this meeting is part of the FCCPC’s ongoing national campaign against exploitative pricing.
Bello explained that price-fixing is especially rampant in retail distribution, where certain market associations set prices that harm consumers. He highlighted that in the poultry industry, a cartel of two major players enforces minimum prices for smaller traders, limiting competition and raising consumer costs.
According to Bello, these key players, having invested heavily to expand their operations, now control 80-90% of the poultry market in the region. “Small poultry owners used to sell a day-old chick for between N480 and N590 and still make a profit,” he stated, “but after the arrival of these big players, a minimum price of N1,350 for a day-old chick is now enforced.”
Despite government interventions—including the distribution of broilers, vitamins, feeds, and financial aid by the federal ministry of agriculture and food security over the past year—poultry prices remain high. For example, the cost of starter mash rose from N11,000 in October 2023 to N23,500 in October 2024.
Bello also attributed high beverage prices to “unfair pricing” set by a cartel of five large players in the packaging sector. “These companies operate in a coordinated manner, ensuring uniform pricing across the market,” he said.
Rather than imposing fines under the FCCPC Act, Bello suggested an open dialogue “in the spirit of democracy.” He urged companies to consider lowering prices to complement President Bola Tinubu’s relief measures aimed at alleviating the economic challenges facing the nation.
The FCCPC recently ruled that disruptions to online banking services violate consumer rights, as outages have hindered millions of Nigerians from accessing their funds and completing essential transactions.