The latest disclosure by the Federal Competition and Consumer Protection Commission (FCCPC) of market manipulation by influential cartels is extremely alarming, particularly since it leaves the Nigerian public with few alternatives.
Development Diaries reports that according to the FCCPC, a ‘cartel’ has been discovered to be manipulating market prices nationwide, inflating costs for goods and services despite government stabilisation efforts.
Although the FCCPC’s openness in telling Nigerians about unfair pricing is commendable, it is not enough to stop the damage that these monopolistic businesses do to the economy nor help reduce the ridiculous increase in many food items.
If the commission’s results are not followed up with real actions, people will be left open to rising prices in key areas like poultry and packaging, which have a direct effect on their daily lives.
Also, the fact that the FCCPC did not name the players in these cartels or punish them right away changes nothing. Action needs to be taken to end this unacceptable practice of setting prices on the market without following basic economic rules like supply and demand.
Small-scale poultry farmers, who once thrived by selling day-old chicks at affordable prices, now struggle under the pricing constraints set by the larger, wealthier players.
This heavy-handed control contradicts the government’s efforts to stabilise prices through agriculture-focused interventions.
Hence, without a clampdown on these monopolistic behaviours, government support will remain ineffective.
The FCCPC runs the risk of losing its reputation as the country’s competition regulator if it does not enforce penalties.
Development Diaries calls on the FCCPC to not just inform stakeholders and the Nigerian public about market exploitation but to follow such with prompt, decisive action against these cartels to promote fair market practices.
Only by penalising these exploitative entities can the commission uphold fair competition, protect consumers from inflated costs, and allow government price stabilisation efforts to produce real results.
Moreover, to ensure that interventions from the Federal Ministry of Agriculture and food security achieve the intended relief for Nigerian poultry farmers and consumers, it is essential that those manipulating the market face the full consequences of their actions.
Photo source: International Institute of Tropical Agriculture
