The Federal Competition and Consumer Protection Commission on Tuesday raided the Utako Ultramodern Market in Abuja, confirming the illegal rebagging of Nigerian rice into foreign-branded sacks.
Several shops were sealed following the operation, which was based on credible intelligence.
Director of Surveillance and Investigations at the FCCPC, Mrs. Boladale Adeyinka, said the raid was prompted by reports that some traders were packaging local rice in sacks bearing the names of discontinued foreign brands such as Royal Stallion, Mama Gold, and Mama Africa.
“Based on intelligence that they are rebagging foreign brands in this market, and the intelligence of the brand owners that these brands are no longer in the market, we carried out this operation to confirm and validate the intelligence,” Adeyinka said.
She confirmed that the practice was indeed taking place, with local rice being deceptively sold as imported varieties to exploit consumers’ preference for foreign rice.
“And we confirm that our rice (local rice) is being packaged in foreign brands and sold as foreign rice. And because the appetite of Nigerians is for foreign rice, which is no longer in the market, the market cartels are now going about rebagging the local rice and selling it as foreign.
“That is exploitative and against the consumer’s economic interest,” she explained.
Adeyinka further noted that the rebagged rice did not originate from Thailand and stressed that the original brand owners had long ceased exports to Nigeria.
“Royal Stallion left completely in 2015, while Olam, some of their products, especially Mama Gold and Mama Africa, are not imported into Nigeria,” she said.
According to her, these unethical practices created an unfair market environment, discouraging legitimate business operations and stifling the growth of local industries.
She also warned consumers about misleading packaging, revealing that most of the so-called 50kg bags weighed as little as 45kg.
“A lot of these products are underweight… the practice was anti-competitive, and has hindered the growth of local indigenous industries,” Adeyinka added.
On sanctions, she said the offences fall under misleading trade practices and deceptive business conduct, noting that the FCCPC would follow due process, confiscate the products, and impose penalties.
“The due process of the law will be followed. Products will be confiscated, shops will be sealed and the commission will follow the trail to bust those producing and rebagging these local rice as foreign products.
“We have almost ten shops based on our intel, and we have sealed up five. We will keep ourselves under the radar to continue to monitor the intelligence,” she added.
She warned that failure to cooperate during investigations would result in prosecution under the FCCPC Act.
A key outcome of the raid was the sealing of a shop involved in selling rebagged rice, with more enforcement actions expected in the coming days.
