FCCPC blames grain hoarders for Nigeria’s rising food inflation

The Federal Competition and Consumer Protection Commission (FCCPC) has identified grain hoarders as a major contributor to the sharp rise in food inflation in Nigeria.

Speaking at a town hall meeting in Kano on Wednesday, FCCPC’s Executive Vice Chairman/CEO, Tunji Bello, revealed that some merchants were intentionally stockpiling newly harvested grains to create artificial scarcity and drive up prices. The meeting, held at the Afficent Centre, brought together key players in the agricultural sector.

Bello explained that FCCPC investigators had uncovered the troubling trend during their operations, which also revealed that some of these merchants smuggle hoarded grains across Nigeria’s borders to sell at higher prices, further threatening the country’s food security.

“These unscrupulous actors show little regard for the impact of their actions on ordinary Nigerians,” Bello stated. “By hoarding and smuggling grains, they are not only inflating food prices but also putting national food security at risk.”

This town hall in Kano follows similar discussions in Abuja and Lagos, as the FCCPC ramps up its campaign to tackle anti-consumer practices across the country. Bello called for collective action from stakeholders in Kano to address these unethical activities.

“We are not accusing everyone of wrongdoing,” Bello clarified. “However, there are a few bad actors who are engaging in unethical practices, and we must work together to ensure fair pricing of goods and services.”

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In addition to grain hoarding, Bello pointed to other harmful practices like price fixing and market associations imposing entrance levies, which contribute to rising inflation. Despite the existence of penalties under the FCCPC Act, Bello emphasized that the commission is first seeking dialogue with industry stakeholders “in the spirit of democracy.”

He also expressed confidence in the government’s efforts to address the economic challenges, noting that President Bola Tinubu is taking steps to mitigate the effects of ongoing reforms.

“We have a President who listens and cares deeply about the people’s welfare. His administration is already working to alleviate the burdens of these economic reforms,” Bello said.

As part of these measures, the government has implemented zero VAT and excise duties on pharmaceutical products, medical devices, micro, small, and medium enterprises, and public transportation. Bello urged stakeholders to ensure that these concessions benefit consumers, particularly in sectors like public transportation, where the government is offering incentives for the adoption of cheaper, cleaner fuel alternatives.

“When the government assists public transport operators with credits to convert their vehicles to cheaper CNG, we expect them to pass these savings on to consumers,” Bello concluded.

The FCCPC’s campaign continues as it seeks collaboration from industry players to protect consumers and stabilize food prices in Nigeria.