The Federal Competition and Consumer Protection Commission (FCCPC) has attributed rising food inflation in Nigeria to the actions of unscrupulous individuals engaged in hoarding and price manipulation. These practices, according to the commission, are driving up food prices and exacerbating economic challenges.
Speaking at a town hall meeting in Kano with industry leaders, micro, small, and medium enterprises (MSMEs), farmers, transporters, and market stakeholders, FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, outlined the major contributors to food inflation. He pointed to hoarders, price fixers, and market associations imposing entrance levies as key players in distorting the food market.
Bello emphasized that these “bad eggs” would eventually be brought to justice, assuring that the government was working to address these unethical practices. “Over time, all the bad eggs engaged in hoarding, artificial market creation, price fixing, and gouging will be checkmated by the government,” he said.
He further explained that such actions violate various sections of the FCCPC Act of 2018, including sections 18(3)(c), 62, 63, 66(1), and 108, which prescribe penalties ranging from hefty fines to imprisonment for offenders.
The FCCPC boss highlighted the commission’s investigation into these unethical practices, revealing that certain produce merchants were hoarding newly harvested grains, contributing to national food insecurity. “These actors, without caring for the consequences of their actions on fellow countrymen and women, sometimes smuggle food items they’ve hoarded across the borders to sell at a premium,” Bello remarked.
In his address, Bello made it clear that not all stakeholders were guilty of these offenses, but emphasized the need for collective responsibility to ensure fair pricing, particularly during this period of economic reforms. “We are not saying everyone is guilty. It’s just a few bad eggs involved in unethical practices. We must all work together to achieve reasonable pricing of goods and services, especially as the country undergoes bold economic reforms that may cause temporary discomfort but will lead to a better economy,” he said.
He urged Kano State stakeholders to collaborate with the commission in curbing these practices in the interest of national security and food stability.
Reflecting on the impact of earlier engagements in Lagos, Bello noted that President Bola Tinubu has responded to stakeholder concerns with new policies aimed at easing the burden of ongoing economic reforms. “We have a listening President who feels for the people, shares their pains, and is willing to cushion the effects of the hardship brought by these reforms,” he stated.
Bello added that the government has begun implementing key measures, such as the removal of VAT and excise duties on pharmaceutical products and medical devices, as well as the reduction of taxes to support MSMEs and public transportation. He urged operators to pass the benefits of these concessions on to consumers.
“For example, when the government provides easy credit to help public transport operators convert their vehicles from petrol to the cheaper Compressed Natural Gas (CNG), we expect them to adjust their fares accordingly and not charge the same rates as those using petrol,” Bello concluded.
