Officials of the Federal Competition and Consumer Protection Commission (FCCPC) have raided the Utako market in Abuja, sealing several shops over the alleged buying and selling of local rice re-bagged as foreign brands by market cartels.
The operation, which took place on Tuesday, was carried out with the support of police officers and other security operatives, and was monitored by Nairametrics.
Nairametrics reports that the FCCPC officials targeted shop owners selling rice brands like Royal Stallion and Mama Gold, asserting that intelligence gathered indicated these companies had ceased importing their rice brands into Nigeria as far back as 2015.
Nairametrics observed that more than five large shops stocked with various bags of rice were sealed during the raid, and the owners were directed to report to the FCCPC headquarters for investigation.
Ongoing Probe Into Rice Cartels
Explaining the development in a press interview, Mrs. Boladale Adeyinka, Director of the Surveillance and Investigation Department at FCCPC, said that intelligence indicated a trend of re-bagging local rice as foreign brands.
- According to her, intelligence from foreign brand owners also confirmed that these foreign rice brands are no longer available in the Nigerian market.
“The Commission has resolved to carry out this ongoing operation to confirm and validate reports that local rice is being packaged as imported rice,” she explained.
Standing beside a sealed shop, Mrs. Adeyinka emphasized that due to Nigerians’ preference for foreign rice—despite it no longer being imported—market cartels have allegedly resorted to re-bagging local rice and selling it as foreign.
“That is exploitative. That is against consumer economic interests,” she said.
- She noted that instead of consumers buying local rice as it is, they are being misled into purchasing it in imported-branded bags.
“They are not imported. They are not from Thailand. In fact, for Mama Gold, all exports ceased as far back as 2015. This is 2025, and yet, as you heard from the testimony of a trader, he is aware that those sizes are no longer sold. That’s why we’re here,” she said.
- She added that due process would be followed, and the implicated products would be confiscated by the federal government.
“We will follow the trail to identify those producing and branding local rice with foreign labels that no longer exist in the market. The brand owners have already publicly announced they are no longer distributing in Nigeria. However, due to brand recognition, these cartels continue to exploit consumers,” she added.
- She assured the public that the Commission will continue to remove such products from the market.
- She warned sellers to ensure they are sourcing their stock from Nigerian mills or authorized distributors/importers of foreign brands.
“We have administrative penalties and fines under our law,” she said, noting that any resistance by traders or refusal to cooperate with investigators will result in prosecution.
Traders React
Speaking to the press, Igwenma Alex, secretary of the Utako Market Shop Ownership/Traders Association, claimed that rice sellers had full stock and were unaware that the foreign brands had been banned.
“When something is banned, shouldn’t awareness be created for Nigerians? So that they know it’s now considered counterfeit? Even when you ban something, it’s not just about the traders—you’re protecting the entire nation,” he said.
He argued that both consumers and sellers lacked awareness of the development.
One of the traders whose shop was sealed by the FCCPC, told the press that if he knew those rice products were banned or are no longer in the market, he would not have bought it.
He stressed that he buys his goods from Kaduna Road and Kano.
What You Should Know
Under Section 125 of the FCCPA, businesses are prohibited from making false or deceptive representations about product attributes to consumers.
Section 138 reinforces this by holding manufacturers, importers, distributors, and suppliers accountable for breaches of implied obligations, including product claims.
