- Traders blame multiple extortion by security agencies mounting checkpoints on roads
- FCCPC tour markets, confirm trade unions’ complicity in inflation
The extortionate practices of trade union leaders and the negative contributions of the unions and associations have been contributing to worsening inflation rates in prices of food items and other essential commodities, findings by The Point have revealed.
It was gathered that in many parts of Nigeria, especially in the South West region, individuals are coerced into joining market associations and are being compelled to pay huge amounts of money as registration fees notwithstanding their meagre commodities.
Farmers who are into subsistence farming are often accosted at market places by market union leaders and prevented from selling their farm produce at cheaper rates.
“These union people stop us from selling our vegetables, pepper and other things we harvested from our farm whenever we bring them to the market places to sell. They complain that we are spoiling business for them as people patronize us more due to the cheaper rates we are selling.
“It is disturbing us because the money they are asking us to pay to register in the union is very much. Imagine, the vegetable I brought to the market to sell is not up to N10, 000 but these (union leaders) asked me to pay N15, 000 to get registered into the vegetable sellers association.
“With this huge payment, there is no way I won’t increase the price of my vegetables whenever I bring them to the market. These union leaders don’t take it easy with people. They seize our goods and warn us from coming to the market to sell without registering,” a peasant farmer in Esa-Oke, Osun State lamented.
The Point gathered that some trade unions fix prices of goods during their meetings and place curses on those who sell below the fixed prices.
Some traders argued that bribery of security operatives, and a hike in fertilizer and fuel prices are some of other factors responsible for the inflation in food and commodity prices.
The traders, during a fact-finding survey conducted by the Federal Competition and Consumer Protection Commission in Osun State recently, said they could not extort residents of the state by arbitrarily inflating food and commodity prices.
The officials of the FCCPC inspected markets in Ayedaade and Orolu Local Government Areas of the state recently.
Speaking at the market, the FCCPC South West Zonal Coordinator, Mrs. Janet Odo, explained that the visit was to interact with traders’ associations and marketers to ascertain factors responsible for the continuous hike in food prices in the country.
According to Odo, the commission is committed to gathering all relevant information to present a comprehensive report to the Federal Government, adding that the report would serve as a basis for formulating policies in the areas of competition and consumer protection.
She noted that findings by the commission revealed that there were conspiracies on the part of the market associations and unions across markets in Nigeria, thereby contributing to the price surge.
She said, “We are here in Gbongan market, the boundary between Oyo and Osun states. FCCPC has been engaging in a fact-finding mission to understand why there is a high cost of food commodities in the market.
“We are in the Gbongan market to carry out our fact-finding mission to interact directly with those in the food industry, especially distributors, wholesalers, and retailers to gather our facts as to why there is a hike in food commodities at this particular time.
“This is a survey that is going on across the country; we collate our facts and send them down to serve as points of advising the Federal Government.
“Section 17b of our mandate says we should gather facts, review them, and from the facts advise the government on the policies that have to do with competition and consumer protection.
“From our surveillance, there has been a purported conspiracy in the market, price indulging carried out by associations and unions, which is why there is an escalation in food prices.
“As for what we gathered from market executives which are Iyaloja and Babaloja, their assertion is that inflation affected the price of food.”
The Iyaloja of Gbongan, Chief Temilade Adewale put the blame on the removal of fuel subsidy by President Bola Tinubu, saying it has resulted in an exponential increase in transportation costs for goods.
Adewale disclosed that the cost of transporting a single bag of rice from the North was increased from N2, 500 to N6, 500.
She also accused some customs officials of demanding bribes before allowing goods to pass through; a practice she alleged has led to an increase in the price of rice.
Adewale said, “What caused the hike in prices of food commodities is the removal of fuel subsidy; another thing is the bribe on commodities, especially on rice by men of Nigerian Customs Service. The security operatives on our roads collect bribes, all these tell on prices of commodities.”
A consumer, Mary Adetoye, who was in the market to buy food items, said foodstuffs are gradually becoming unaffordable for the common people in Nigeria.
Adetoye appealed to the government to urgently intervene in the skyrocketing prices of food items.
Disturbed by this development that has lasted for years unchecked, some traditional rulers are beginning to react by placing bans on trade unions in their domains in order to curb selling food and other items at skyrocketed prices.
Recently, the Owa Obokun of Ijesaland, Oba Gabriel Adekunle Aromolaran banned trade and transport unionism in Ilesa and other areas in Ijesaland and warned them to desist from fixing and enforcing prices of commodities on traders, at the expense of members of the public.
According to sources at the palace, the excesses of the trade unions and associations were getting out of hand, making some stakeholders report them to the palace.
Findings revealed that the palace had initiated discussions with leaders of the transport and trade unions and other associations on the need to allow an open and free price market.
However, the discussion didn’t yield any positive result, forcing Oba Aromolaran to ban trade unionism and business associations across Ijesaland.
Oba Aromolaran, in a statement from the palace, directed all business owners in the town to continue their trade without fear of any association.
In the same vein, the Osemawe of Ondo Kingdom in Ondo State, Oba Victor Kiladejo ordered the prohibition of the idea of traders being forced to join associations in the kingdom
Oba Kiladejo gave the order, through the Osemawe-in-Council, as part of the efforts to reduce the prices of food and commodities and services.
