The Executive Vice Chairman/CEO of the Federal Competition and Consumer Protection Commission (FCCPC) Mr. Tunji Bello, has blamed Nigerians hoarding grains for the high inflation food inflation in Nigeria.
Bello stated this during a town hall meeting held on Wednesday in Kano. Speaking at the meeting, Bello said FCCPC investigators discovered some merchants were stockpiling newly harvested grains in warehouses to create artificial scarcity.
This practice, he said, has exacerbated the country’s food inflation crisis.
“Without considering the impact on their fellow citizens, some unscrupulous actors have been hoarding food supplies and even smuggling them across borders to sell at higher prices, compromising our national food security,” Bello stated.
Engagement with stakeholders
The town hall meeting in Kano followed similar interactive sessions in Abuja and Lagos, organized by the FCCPC to address anti-consumer practices and engage stakeholders in the production and distribution chains.
- Bello called on the Kano stakeholders, which included industry leaders, MSMEs, farmers, market heads, and transporters, to collaborate in curbing these unethical practices.
- He clarified that only a small number of bad actors were involved but emphasized the importance of collective action to ensure fair pricing of goods and services, particularly as Nigeria undergoes economic reforms that, while challenging today, are expected to improve the economy in the future.
- In addition to grain hoarding, Bello pointed out other unethical practices such as price fixing and the creation of artificial barriers like entrance levies imposed by market associations.
Dialogue over penalties
While the FCCPC Act prescribes stiff penalties, including heavy fines and jail terms for offenders, Bello said the Commission is prioritizing dialogue in the spirit of democracy.
He also highlighted the positive outcomes from earlier engagements in Abuja and Lagos, noting that President Bola Tinubu has already responded to stakeholder concerns with new policies aimed at easing the economic burden.
“We have a very responsive President in His Excellency, Asiwaju Bola Ahmed Tinubu, who empathizes with the people and is committed to taking steps to alleviate the challenges brought on by ongoing economic reforms,” Bello said.
- He added that the Federal Government has begun implementing several relief measures, including the removal of VAT and excise duties on pharmaceutical products and medical devices, as well as the elimination of certain taxes to support MSMEs and public transportation.
- Bello urged the stakeholders to share the benefits of government concessions with consumers. For example, he noted that when public transportation operators receive government assistance to convert their vehicles from petrol to cheaper CNG, they should pass on those savings to passengers.
What you should know
Nigeria’s food situation has been challenged by insecurity in the food-producing regions, climate change, and other structural issues.
- A report by S.B. Morgan Intelligence indicates that at least 1,356 farmers have been killed, predominantly in the northern region of the country, between 2020 and 2024.
- This finding aligns with an earlier report from this year, which highlighted that farmers in the North often pay up to N100,000 to access their farms and harvest crops.
- Nigeria’s food inflation reached a 28-year record of 40.87% in June before it tapered in June and June.
- However, there are renewed threats to food inflation following an upward review of petrol prices by the NNPCL and recent floods in some parts of the North and Niger Delta states.
Earlier in the year, the World Bank projected that seven states in the Northern parts of Nigeria would face severe hunger in the country.
The Food and Agriculture Organisation FAO) noted that the number of hungry people in the country has reached 32%- about 16% of Nigeria’s population.
