The Federal Competition and Consumer Protection Commission (FCCPC) has attributed the ongoing food inflation in Nigeria to unethical practices such as hoarding and price fixing by market players. This was revealed by the Executive Vice Chairman and CEO of FCCPC, Tunji Bello, during a town hall meeting in Kano with industry leaders, market associations, and small business owners.
Bello explained that “unscrupulous actors” within the food supply chain engage in hoarding newly harvested grains and creating artificial scarcity, thereby driving up prices. According to him, these actions not only hurt consumers but also jeopardise the nation’s food security. “Without caring for the consequences of their actions on fellow countrymen, some actors even smuggle food items across borders to sell at a premium,” he noted.
In addition to hoarding, Bello cited price fixing by market associations and entrance levies as further causes of inflation. He emphasized that such unethical practices are punishable under the FCCP Act 2018, which prescribes fines and jail terms for offenders. “All the bad eggs engaged in these practices will be checked by the government,” Bello assured, noting that the FCCPC initially opted for dialogue to encourage voluntary compliance.
During the meeting, Bello solicited the support of Kano State stakeholders in tackling these unwholesome practices, stressing that collaboration is crucial to achieving fair pricing of goods and services, particularly during the current economic reforms. “It is our collective responsibility to ensure reasonable pricing,” he said.
The FCCPC boss also highlighted the gains from a similar engagement in Lagos, noting that President Bola Tinubu had responded to stakeholders’ concerns with policies such as the removal of value-added tax (VAT) on pharmaceutical products and other tax cuts to support micro, small, and medium enterprises (MSMEs).
Bello urged stakeholders, especially those in public transportation, to pass on the benefits of government concessions to consumers. “When the government assists with cheaper CNG conversion, we don’t expect transport operators to charge the same fares as those who buy petrol,” he stated.
