Federal Government Blames Market Cartels For Rising Food Prices
The Federal Government has pointed fingers at market associations across Nigeria for the persistent surge in food prices that has burdened consumers nationwide.
During a pivotal webinar themed ‘Collaboration for competition and consumer protection’ held in Abuja yesterday, Acting Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), Dr. Adamu Abdullahi, highlighted the role of market associations in manipulating food prices.
He emphasized that these associations, established to facilitate fair trade, have devolved into cartels dictating prices and controlling supply dynamics to inflate costs.
“We are witnessing sharp practices in our markets where associations, originally intended to support fair market access, now enforce exclusivity and price fixing,” Abdullahi stated.
“Farmers outside these associations are often barred from selling their produce, leading to artificial scarcity and inflated prices.”
Acknowledging the FCCPC’s mandate as consumer protection rather than price regulation, Abdullahi affirmed the commission’s commitment to curbing market abuses such as price gouging and cartelization.
He specifically cited recent actions against market management authorities in Abuja and local government officials complicit in these practices.
Furthermore, Abdullahi addressed additional factors contributing to rising food prices, including issues with transportation logistics exacerbated by faulty vehicles and escalating diesel costs.
In response, he outlined government initiatives to mitigate transportation expenses through the adoption of Compressed Natural Gas (CNG). This transition, he claimed, could potentially reduce fuel costs for traders and farmers by up to 60%.
The FCCPC’s efforts underscore a broader governmental strategy to stabilize food prices and ensure fair market practices across Nigeria. As consumer advocacy groups and NGOs collaborate with regulatory bodies, the focus remains on fostering competitive markets that benefit both producers and consumers alike.
