FCCPC Launches Investigation into Skyrocketing Food Prices in Osun State

FCCPC Launches Investigation into Skyrocketing Food Prices in Osun State

In The Federal Competition and Consumer Protection Commission (FCCPC) has initiated an investigation in Osun State. The probe aims to make food and other essential items more affordable for consumers.

On Friday, FCCPC’s team visited two popular markets in Osun State – Olufi and Ifon-Orolu – located in Ayedaade and Orolu Local Government areas. After their initial survey, they suspect a conspiracy among market associations and unions to inflate food prices, a practice known as price gouging.

However, market associations have a different story. They blame the price hikes on President Bola Ahmed Tinubu’s decision to remove fuel subsidies. According to them, the resulting increase in fuel prices has led to higher costs for goods in the markets.

The associations also point fingers at customs officers, accusing them of demanding bribes. “It’s very hard to get rice from Cotonou now,” one trader said. “In the last three weeks, customs officers at Saki collected 15.6 million naira in bribes for eight busloads of rice.”

Transportation costs have also soared. “Before, we paid ₦2,500 to transport one bag from the North, but now it’s ₦6,500,” explained Temilade Adewale, the Iyaloja (market leader) of Olufi Market in Gbongan. She added that local rice, which used to cost ₦1,200 per congo (a local measure), now costs ₦2,200.

Janet Odo, the FCCPC’s South West Zone Coordinator, shared insights from their market survey. “We’ve found that throughout the food chain – from wholesalers to retailers – there seems to be conspiracy, price gouging, hoarding, and other unfair tactics,” she stated.

The FCCPC’s mission is to engage directly with those in the food industry to understand the causes behind the price hikes. Odo believes that market associations and unions may be contributing to this surge. “From our surveillance, there appears to be a kind of conspiracy and price indulging by these groups,” she said.

The commission’s findings will be compiled into a detailed report for the federal government. This report aims to shape policies related to competition and consumer protection, ensuring fair pricing for consumers.

This investigation is part of a nationwide survey by the FCCPC. As Odo explains, “We’re gathering facts across the country to advise the government on competition and consumer protection policies.”

While the FCCPC suspects market manipulations, traders insist that external factors like fuel subsidy removal and customs corruption are the real culprits behind Nigeria’s soaring food prices.