By Jimoh Babatunde 

About 25 million Nigerians are reportedly at high risk of food insecurity as  African consumers are still facing extreme prices despite the decrease in global food prices.

Ms Davine Minayo, Fair Food Prices Specialist at Consumers International made this disclosure at a high-level multi-stakeholder forum held in Lagos where actors throughout the food value chain gathered to address the challenges of unfair food prices in Nigeria – triggered by global supply shocks, but escalated by insufficient competition and harmful business practices.

The forum was co-organized in partnership with the Federal Competition and Consumer Protection Commission (FCCPC). 

In her opening remarks, Ms Minayo, Fair Food Prices Specialist at Consumers International said: “Tackling unfair food prices requires stronger competition, to prevent abuse of market dominance and anti-competitive practices. To achieve this, Nigeria needs a strong and well-resourced competition authority, as well as stronger data and evidence, and a greater voice for affected stakeholders, especially consumers and producers”.

“Global food prices have been decreasing since March 2022, yet African consumers are still facing extreme price rises, with more than 25 million Nigerians at high risk of food insecurity. Food producers are also struggling –they are not benefitting from the high consumer prices. 

The problem is a lack of competition in the marketplace – a small number of actors are profiting, while the majority struggle with unfair food prices. 

“To tackle this, Nigeria needs a strong and well-resourced competition authority to prevent anti-competitive practices, as well as stronger data and evidence, and a greater voice for key stakeholders, especially consumers and producers.

The causes of unfair food prices global food prices have been steadily decreasing since March 2022, yet African economies are still experiencing rising food prices. 

In May 2023, Nigeria reported 22.41% annual food price inflation, the highest level in almost 20 years; and rising prices have put more than 25 million Nigerians at high risk of food insecurity, 

according to the UN Food and Agriculture Organization (FAO). This implies there are issues to be addressed within Nigeria’s food systems and marketplace.

Participants at the forum emphasized that food prices are rising unfairly as some actors are profiting excessively through anti-competitive practices such as price gouging and cartels, while consumers and farmers struggle.

Mr Babatunde Irukera, Chief Executive Officer of the FCCPC, expanded on this threat, saying “Issues like price gouging and anti-competitive conduct are certainly contributing to the extremely high food prices. 

Trade associations in many places have become cartels that are illegal. Trade associations are vital and important to the wellbeing of society, but there are limitations on what they should engage in”. 

He added, “We will continue to monitor the market, and where we find that prices are excessive, or find exploitative conduct, or that consumers are being taken advantage of, we will intervene.”

Another key element raised during the forum was the severe shortage of data and evidence, as well as the lack of monitoring and surveillance of food prices and other variables in the value chain; while the situation is causing hunger and malnutrition among consumers.

Building collaborative solutions In view of the current dynamic, participants agreed that only a collaborative approach, built on cooperation and action by all stakeholders (government, businesses, consumers, producers, researchers, and more), can deliver the solutions needed to tackle unfair food prices in Nigeria. 

Six (6) main actions constitute the outcome of the forum:

• The Federal Competition and Consumer Protection Commission (FCCPC) and other authorities must be supported and empowered to take action against anti-competitive practices that are exploiting consumers and producers.

• Authorities, consumer groups, researchers, and others, must collaborate to implement a food price monitoring mechanism, that can provide greater transparency on unfair prices and support decision-making by all stakeholders. 

• Value chain surveillance and enforcement must be strengthened, through investigation into key bottlenecks and price build-ups; multi-stakeholder taskforces to support enforcement; a secure whistleblowing system for alerts on anti-competitive practices; and proactive measures from FCCPC to eliminate these practices.

• Ministries of trade, agriculture, and more, must take action to address other distortions and inefficiencies in the value chain, such as those linked to infrastructure and transportation; imports and taxes; and supply shocks linked to conflict and climate that are disrupting food supply.

• The voices of consumers, producers, and traders must be included all throughout the governance of food systems and marketplaces, in order to learn from their specific experiences and to ensure the protection of the most vulnerable.

• All stakeholders must continue to collaborate beyond the forum, through sectoral and cross-sectoral taskforces and coalitions that facilitate: the development and enforcement of policy and regulation; collection and sharing of data and evidence; development of academic research to strengthen knowledge; investigative journalism and media coverage of issues of unfair food prices; and much more.