The Federal Competition and Consumer Protection Commission (FCCPC) has placed significant blame on hoarders for the rising food prices in Nigeria, a trend that has raised alarm bells in economic circles. Tunji Bello, the Chief Executive Officer of the FCCPC, highlighted the role of unscrupulous produce merchants who are stockpiling newly harvested grains. This hoarding is said to create artificial scarcity and contribute to escalating food inflation rates, which have been steadily climbing since December 2022, with the National Bureau of Statistics reporting a staggering 37.77% food inflation figure for September 2024. Bello’s remarks were made at a town hall meeting in Kano, where he engaged with key stakeholders, revealing a disturbing pattern of behavior among some merchants who, driven by profit motives, not only hoard essential food items but also smuggle them across borders to sell at higher prices.
During the meeting, Bello called on stakeholders—including market leaders, farmers, transporters, and service providers—to unite in combating unethical trading practices that threaten the country’s food security and exacerbate inflation. He emphasized that while there are indeed “a few bad eggs” involved in such hoarding, it is overwhelmingly a collective responsibility to ensure reasonable pricing for goods and services. In addition to hoarding, Bello also pointed out other unethical practices such as price fixing and arbitrary levies imposed by market associations, which further inflate costs in the marketplace. While he acknowledged the FCCPC Act’s offense penalties, he advocated for an initial approach grounded in dialogue to address these challenges.
Further dialogues with stakeholders are part of the FCCPC’s broader strategy to confront anti-consumer practices. Bello indicated that previous engagements in Abuja and Lagos had yielded positive outcomes, alluding to changes in government policy that directly address public concerns regarding economic hardships. Prominent among these is President Bola Tinubu’s commitment to implementing measures that alleviate the burdens stemming from ongoing economic reforms. The President’s active listening to the populace, according to Bello, is promising for citizens as there appears to be an openness to consider their needs in the face of rising hardships.
In a positive sign for pharmaceutical suppliers, Bello informed stakeholders of the recent introduction of a zero VAT policy on pharmaceutical products and medical devices, alongside the removal of several taxation hindrances. These measures aim to provide relief, particularly to micro, small, and medium enterprises, as well as the public transportation sector, which is facing financial strain. He urged transport operators to adjust their pricing in response to government concessions, especially when transitioning from petrol to cheaper compressed natural gas. This call to action reflects the government’s intention to stimulate economic activity by easing operational costs across various sectors.
However, not all stakeholders are fully convinced of the efficacy of these developments, especially in the pharmaceutical sector. Organizations such as the Pharmaceutical Manufacturers Group Manufacturers Association of Nigeria (PMG-MAN) and the Pharmaceutical Society of Nigeria have vocalized their concerns over the slow implementation of the zero VAT policy. PMG-MAN Chairman, Oluwatosin Jolayemi, publicly implored the Federal Government to expedite the rollout of the necessary frameworks following President Tinubu’s June 2024 Executive Order. Despite the recent announcement from the Federal Ministry of Health and Social Welfare regarding the zero VAT and excise duties, pharmaceutical manufacturers contend that tangible benefits of the policy remain elusive, hindering their operational capabilities.
In summary, the FCCPC’s revelations about hoarding practices and their escalating impact on food inflation underscore a critical intersection of consumer protection and economic stability. Tunji Bello’s call for collective action against unethical trading practices serves to highlight the important role of cooperation among stakeholders in ensuring food security in Nigeria. The government’s efforts, reflected in the introduction of favorable policies, endeavor to address the economic challenges faced by both consumers and producers. Yet, the road ahead is fraught with challenges as stakeholders in various sectors, particularly pharmaceuticals, continue to seek assurances of real benefits stemming from policy changes. Addressing these issues will be paramount to fostering an economically stable and secure environment for all Nigerians.
