The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has recently raised alarms over the activities of cartels manipulating poultry prices to maintain an artificially high market rate. The commission’s investigations have unveiled practices by influential groups within the poultry industry who engage in restrictive trade practices, creating supply constraints to drive up the prices of poultry products, notably eggs and chicken. Such manipulation not only restricts consumer access to affordable poultry but also impacts poultry farmers who often see diminished returns due to the inequitable control exerted by these cartels.
According to the FCCPC, these manipulations are evident in several stages of the poultry supply chain, from the acquisition of feed and other critical resources to the distribution channels that reach the final consumers. The commission has identified a disturbing pattern where large entities use their dominant market positions to control the availability of poultry products, subsequently influencing prices across the sector. This practice is creating severe economic impacts, as poultry is a staple food in Nigeria, contributing significantly to dietary protein intake across households. The constant price hikes are putting pressure on consumers who already struggle with inflationary pressures on other food items, stretching household budgets and making it increasingly difficult for many to access basic protein sources.
Further complicating matters, the cost of poultry feed, which accounts for the largest share of production costs, has been affected by price manipulations. Major feed producers, who sometimes have ties to the cartels in question, restrict the supply or adjust prices in ways that force smaller producers to either hike their product prices or exit the market entirely. This monopolistic control harms fair competition, leading to a decrease in market participation by small and medium-sized poultry farmers, thereby reducing overall production volumes. As these farmers are squeezed out, the cartel’s influence over pricing grows stronger, effectively sidelining any potential competition and reinforcing a vicious cycle of scarcity and high prices.
The FCCPC has taken actions to address these concerns including conducting investigations enforcing existing antitrust laws and issuing warnings to key industry stakeholders the commission officials stress the need for openness and fair market procedures enabling additional firms to enter the market without fear of being overwhelmed by monopolistic forces however implementing these rules has been difficult particularly when powerful cartel networks operate across multiple states and regions often with sophisticated pricing setting and distribution control systems that make accountability difficult to determine
The current position is unsustainable and the FCCPC has warned that market manipulation might have long-term negative consequences for Nigeria’s food security the commission is urging stronger collaboration among industry participants government agencies and consumer protection organizations to destroy these networks of influence and encourage competition this involves lobbying legislative bodies to impose stiffer punishments for individuals found guilty of anti-competitive behaviour ensuring that such deceptive techniques have serious consequences.
On a broader scale, the poultry industry’s challenges reflect a larger issue within Nigeria agricultural and food supply chains where inefficiencies price manipulation and lack of regulatory oversight allow powerful actors to exert undue influence to combat this the fccpc is also exploring avenues to support local farmers by promoting subsidies and incentives that would make it easier for independent producers to access the resources needed to maintain a steady production flow by leveling the playing field the fccpc aims to ensure fair competition and improved consumer access to affordable poultry products.
As the situation evolves the fccpcs vigilance and proactive measures are seen as essential to restoring balance in the poultry market their efforts highlight a crucial need for sustainable agricultural policies and robust antitrust enforcement not only in poultry but across all sectors of nigerias economy without timely interventions these manipulations threaten to erode consumer trust and exacerbate the challenges facing food accessibility the commissions initiatives are aimed at securing an equitable market environment where consumers and small-scale producers can thrive without the interference of powerful cartels thereby ensuring the availability and affordability of poultry products for all.
