Market associations to blame for rising food prices – FCCPC

The Federal Competition and Consumer Protection Commission (FCCPC) on Thursday attributed the persistent increase in food prices to market associations across Nigeria’s 36 states and the Federal Capital Territory.

During a one-day webinar themed “Collaboration for Competition and Consumer Protection” with NGOs and Consumer Protection Groups, Acting Executive Vice Chairman Dr. Adamu Abdullahi highlighted that while insecurity affects food production, certain individuals in the market have taken control of the supply and distribution chains.

“We are not a price regulatory agency, but we must address sharp practices like price gouging and cartel behavior,” Abdullahi stated. He criticized market associations for preventing non-members from entering markets, evolving into cartels that dictate food prices and supply rates to create scarcity and inflate prices.

Read also:

• 
  DESOPADEC empowers Delta entrepreneurs with tools, funds
• 
  Kwara engages agricultural stakeholders to boost SMEs in agribusiness
• 
  Nigeria, France partner to address mining sector challenges
• 
  Akwa Ibom promises to boost agriculture, create jobs
• 
  Fire destroys shops in Ibadan market
  
• 
  FG grants empower over 38,000 businesses in Ebonyi, Delta States

Abdullahi revealed that the FCCPC, in collaboration with the National Consumer Advocacy Group, found that price hikes are also caused by faulty vehicles and high diesel costs. Farmers face significant expenses at checkpoints and local governments, and use dilapidated vehicles that often break down, leading to waste and higher prices.

The poor state of roads forces farmers to use petrol for small vehicles to reach markets, then transfer goods to diesel trucks for urban distribution, further increasing costs.

To mitigate transportation costs, the federal government plans to implement Compressed Natural Gas (CNG), potentially saving traders and farmers up to 60% on fuel expenses. Abdullahi assured that the FCCPC is committed to tackling market manipulations and price gouging.