Now Nigeria’s inflation has soared to a four-year high of more than 18 percent in March 2021, with food prices up 22.9 percent, according to the National Bureau of Statistics. (Photo by PIUS UTOMI EKPEI / AFP)
• Accuses market traders of price gouging, hoarding
The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a comprehensive nationwide investigation into the persistent surge in food prices.
The FCCPC, during the kickoff of the fact-finding mission in markets in Lagos yesterday, engaged directly with traders’ associations, marketers and consumers to collect information and identify the underlying causes of the continuous hike in food prices.
During interactions in Mile 12 and Ile Epo market, the Acting Executive Vice Chairman Dr Adamu Abdullahi, who was represented by the Head of the FCCPC Lagos Office, Suzie Onwuka, said preliminary findings from the FCCPC indicate that some participants in the food supply chain, including wholesalers and retailers, may be involved in the conspiracy, price gouging, hoarding and other unfair practices.
According to him, the tactics, which restrict competition, limit food supply and artificially inflate prices, are illegal under the Federal Competition and Consumer Protection Act (FCCPA).
He said the aim is to open up the markets and address key consumer protection and competition issues affecting food prices.
Abdullahi said upon completion of the inquiry, the FCCPC will compile a detailed report with recommendations for government action by Section 17(b) of the FCCPA.
He said the FCCPC plans to propose broad-based policies to review and regulate economic activities, aiming to eliminate anti-competitive, anti-consumer protection, and restrictive practices.
Abdullahi said the FCCPC’s proactive approach underscores its commitment to protecting consumers and promoting a fair market environment amidst rising concerns over food affordability and accessibility in the country.
The Chairman of the Mile 12 International Market, Shehu Usman Jibril, refuted allegations of price inflation by retailers and attributed the high costs to the substantial expenses involved in procuring goods.
“Nobody is inflating prices. When a basket of tomatoes costs up to N100,000, sellers must cover their costs to avoid losses. Retailers face numerous expenses, including rent, school fees, and transportation, making it a challenging business environment,’ he stated.
Jibril also highlighted broader issues impacting food production, such as security concerns, noting that farmers are struggling due to banditry, which hinders their ability to produce food.
He said providing security is crucial for continued farming and a stable food supply while emphasising the necessity of local farming to meet the needs of Lagos’s burgeoning population, which exceeds 22 million.
