FCCPC Targets Price-Fixing Cartels in Poultry and Packaging Sectors.

The poultry and packaging cartels in Nigeria have been exposed by the Federal Competition and Consumer Protection Commission (FCCPC) for manipulating prices to stay high despite government assistance.

At a stakeholders’ meeting in Uyo, Akwa Ibom State, FCCPC’s Executive Vice Chairman and CEO, Mr Tunji Bello, revealed this revelation as part of the organization’s advocacy campaign against exploitative pricing throughout Nigeria.

Bello claims that big chicken companies have cultivated an atmosphere that forces smaller producers to use exorbitant pricing tactics.

“The small poultry owners used to sell a day-old chick for between N480 and N590 and still made a profit,” Bello stated.

“But with two large players entering the market, they were soon in a position to control 80 to 90 per cent of the poultry market in the city.”

According to reports, these big companies took over the local poultry farmers’ organisation and raised the price of a day-old chick to N1,350, defying the idea that higher output should result in lower costs.

The Federal Ministry of Agriculture and Food Security has continued to provide cash assistance and food and grill supplies.

Nevertheless, the cost of poultry keeps rising despite these measures.

The price of starter mash, for example, increased from N11,000 in October 2023 to N23,500 in October 2024.

Bello also brought attention to the packaging industry’s manipulation of prices.

Five significant companies make up the packaging industry cartel, which manipulates prices in a manner akin to that of a mafia.

The first vendor would have notified the second to quote the same price if you tried to check the price with another provider, Bello stated.

Although the FCCPC Act permits penalties and jail sentences for such actions, the FCCPC has chosen to promote fair practices through conversation.

To stop exploitative pricing and advance market integrity, Bello asked companies in Akwa Ibom to collaborate with the FCCPC.

Bello added that President Bola Tinubu has implemented economic relief policies, such as lowering import duties on food, eliminating the value-added tax on medications, and waiving corporate taxes.

“It is only fair that our businessmen and businesswomen share such gains with consumers in the form of reduced prices,” Bello said.