The Federal Government has said it has unravelled the reason behind the astronomical increase in prices of food items in the market.

According to the Federal Competition and Consumer Protection Commission (FCCPC), cartels formed by traders in markets across the country are the main culprits behind the high prices.

Speaking at a town hall meeting in Lagos on Wednesday, FCCPC Chief Executive Officer, Mr. Tunji Bello, revealed that a nationwide survey conducted by the commission led to the revelation.

Bello explained that these cartels impose exorbitant membership fees on traders, forcing them to join or face exclusion from the market. This practice, he said, is illegal and perpetuates price fixing, exploiting consumers.

The FCCPC boss said that while exchange rates and petrol price increases contribute to price hikes, the disproportionate increases in food prices are largely due to these cartels.

“We discovered that some traders form cartels in the markets and put barriers in the form of ridiculous membership fees intended to ensure price fixing in the market. 

“Without joining them, they won’t allow anyone to sell goods in the market or provide services. Such practices are against the law and constitute some of the offences the Commission is against,” he said.

Bello stated that the commission chose dialogue over action, despite being empowered by law to deal with offenders. He cited Section 17 of the FCCPC Act, which prescribes fines of up to N10 million and three-year jail terms for those found guilty.

Bello also highlighted measures taken by the Tinubu administration to cushion the effects of reforms, including removing taxes on imported food items, pharmaceutical products, and transportation.

However, he stressed that these efforts would be futile if the benefits are not passed down to consumers.