The Federal Government, in collaboration with the Federal Competition and Consumer Protection Commission (FCCPC), is set to impose sanctions on trade associations found guilty of engaging in anti-competitive practices.
The initiative comes as a response to the indiscriminate and irrational hike in food prices that has burdened consumers and sparked concerns about food security in the country.
Speaking at a forum titled ‘Fair food prices in Nigeria,’ the CEO of the FCCPC, Babatunde Irukera, outlined the government’s plan to monitor and address price manipulations and exploitative conduct in the market.
He highlight the need to dismantle bottlenecks created by certain trade associations that dictate prices and limit access to essential food items, thereby creating cartels detrimental to fair competition.
“Associations that come together to determine at what price beans should be sold, associations that come together to decide that nobody in a particular market should take yam, beans, or rice from any other person except their members, we will proceed against them,” Irukera asserted.
The prevalence of such cartels has led to the price gouging of basic food items, hitting consumers hard and undermining the country’s food security.
Irukera emphasized that the FCCPC’s role extends beyond regulating large corporations, stating that the informal sector plays a significant role in the Nigerian economy. As such, developing strategies to regulate informal markets becomes all the more critical in ensuring fair competition and protecting consumers’ interests.
The impending sanctions are expected to send a strong message to trade associations and other market players, urging them to adhere to fair business practices and avoid price manipulation that exacerbates the already challenging economic conditions for ordinary citizens.
While the government acknowledges the vital role of trade associations in representing the interests of businesses, it is clear that those found engaging in anti-competitive practices will face consequences.
The FCCPC’s efforts to intervene and create a level playing field for consumers are an essential step toward stabilizing food prices and enhancing food security in the country.
