FCCPC cracks down on poultry cartels manipulating prices in Nigeria

NIGERIA – The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has launched an aggressive campaign against cartels accused of manipulating poultry prices, which has led to inflated costs for poultry products such as eggs and chicken. 

The FCCPC’s recent investigation exposed widespread anti-competitive behaviour among influential groups within the poultry industry, revealing tactics used to control supply and drive up prices. 

These manipulations have profound implications for Nigerian consumers, who face restricted access to affordable protein sources, and small-scale poultry farmers who struggle under the market dominance of larger players.

The FCCPC’s findings reveal that these cartels exert control over various stages of the poultry supply chain, from feed procurement to product distribution to retailers. 

By limiting the supply of poultry products, these groups artificially increase prices, making poultry, a key source of dietary protein in Nigeria, less accessible to consumers already grappling with rising food costs. 

The commission has voiced concerns that such practices threaten food security and place additional financial strain on households nationwide.

One of the most pressing issues highlighted by the FCCPC is the control of poultry feed prices, a key input representing a significant share of production costs. 

According to the commission, some major feed producers with ties to influential cartels manipulate supply or adjust feed prices to disadvantage small poultry farmers. 

Thus, many smaller producers are forced to increase their prices or, in severe cases, exit the market entirely. 

This monopolistic grip diminishes fair competition, reducing market participation by small and medium-sized farmers and giving the cartels even greater influence over pricing.

In response, the FCCPC has intensified its enforcement of antitrust laws, launching investigations and issuing warnings to industry stakeholders involved in these unfair practices. 

Officials from the commission are urging greater transparency in the poultry sector, advocating for an open market that encourages new entrants without fear of suppression by monopolistic forces. 

However, dismantling these entrenched networks remains challenging, as many cartel operations span multiple states and employ sophisticated systems to control pricing and distribution, complicating accountability efforts.

The FCCPC warns that these manipulations could have severe, long-term consequences if left unchecked for Nigeria’s food security. 

To counter this, the commission calls for a united effort from industry players, government agencies, and consumer protection organisations to dismantle cartel networks and foster competition. 

This strategy includes lobbying for stricter penalties for those found guilty of anti-competitive practices, ensuring that such actions carry meaningful repercussions.

Beyond the poultry sector, the FCCPC’s actions shed light on broader issues within Nigeria’s agricultural and food supply chains, where inefficiencies, price manipulations, and regulatory gaps allow powerful actors to exercise undue control. 

The FCCPC is exploring initiatives to support local farmers by advocating for subsidies and incentives to facilitate access to essential resources, helping independent producers maintain steady production. 

By fostering a level playing field, the FCCPC hopes to create a competitive environment where consumer access to affordable poultry products improves.

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