Grain hoarders, smugglers, causing food inflation in Nigeria — FCCPC
The Federal Competition and Consumer Protection Commission (FCCPC) has identified grain hoarders and smugglers as major contributors to Nigeria’s food inflation crisis.
Tunji Bello, the Executive Vice Chairman (EVC) of FCCPC, made this statement on Wednesday during a town hall meeting in Kano with key stakeholders, including industry leaders, micro, small, and medium enterprises (MSMEs), market heads, farmers, transporters, and service providers.
This meeting followed similar forums in Abuja and Lagos, all part of the FCCPC’s ongoing campaign to eliminate anti-consumer practices across the nation.
Bello revealed that FCCPC investigations had uncovered cases of grain merchants stockpiling newly harvested grains in warehouses, creating an artificial scarcity that has driven up food prices.
“Without regard for the consequences on fellow citizens, some of these unscrupulous actors even smuggle the food items they have hoarded across borders to sell at higher prices, thereby threatening Nigeria’s national food security,” Bello stated.
He called on stakeholders in Kano to join forces in combating these unethical practices for the sake of stabilizing prices and protecting consumers. Bello clarified that while only a small number of actors were involved in these practices, their actions had wide-reaching effects on the nation’s economy.
“It is our collective responsibility to ensure fair pricing of goods and services, especially during a time when the country is undergoing significant economic reforms. These reforms may cause temporary discomfort, but they will ultimately lead to a stronger economy for all Nigerians,” Bello added.
Aside from grain hoarding, Bello also highlighted other unethical practices like price fixing and market associations imposing artificial barriers, such as entrance levies, which further disrupt fair market dynamics.
While the FCCPC Act prescribes penalties including fines and imprisonment for such offenses, Bello emphasized that the commission prefers dialogue and cooperation in line with democratic principles.
Tinubu working to alleviate economic hardship, FCCPC says
Bello also reassured Nigerians that President Bola Tinubu is committed to reducing the economic hardship currently being experienced in the country. According to him, the President is attentive to the public’s concerns and has already begun implementing policies to ease the burden on citizens.
“We have a President who listens—His Excellency, Asiwaju Bola Ahmed Tinubu, feels the people’s pain and is determined to take steps to cushion the effects of the current economic reforms,” Bello said.
He pointed to several measures already in place, including the removal of value-added tax (VAT) and excise duties on pharmaceutical products and medical devices. Additionally, various tax reliefs have been extended to MSMEs, as well as the public transportation sector.
The government has also launched initiatives to promote the use of compressed natural gas (CNG) as a more affordable fuel alternative for public transport operators. Bello urged stakeholders to ensure that the benefits of these concessions are passed on to consumers in the form of reduced fares and lower costs.
The FCCPC’s efforts and the government’s economic interventions, Bello concluded, are designed to stabilize the market and alleviate the challenges currently facing Nigerians, with a focus on long-term economic recovery.
