Government Uncovers Reasons Behind High Market Prices, Pledges New Measures

The Federal Government has identified the root cause of the sharp rise in food prices across markets in the country. According to the Federal Competition and Consumer Protection Commission (FCCPC), trader cartels are primarily responsible for the soaring prices.

Speaking at a town hall meeting in Lagos, FCCPC Chief Executive Officer, Mr. Tunji Bello, explained that a nationwide survey conducted by the commission revealed that these cartels impose excessive membership fees on traders, compelling them to join or face being shut out of the market. This illegal practice promotes price fixing and exploits consumers.

Bello acknowledged that factors like exchange rates and fuel price hikes contribute to rising costs, but emphasized that the disproportionate increase in food prices is mainly driven by these cartels’ actions.

“We found that some traders form cartels and impose barriers through exorbitant membership fees to control prices in the market. Without joining, traders are barred from selling or offering services. This is illegal and a violation of the law,” Bello stated.

Despite the FCCPC’s legal authority to prosecute offenders under Section 17 of its Act, which includes penalties of up to N10 million and jail terms, the commission has opted for dialogue over immediate enforcement.

Bello also pointed to efforts by the Tinubu administration to ease the impact of economic reforms, such as removing taxes on imported food, pharmaceuticals, and transportation. However, he warned that these measures would be ineffective if the benefits don’t reach consumers.