The Federal Competition and Consumer Protection Commission (FCCPC) has raided three steel manufacturing companies in Ogun State following allegations of producing substandard iron rods and engaging in anti-competitive practices.
The companies targeted in the operation are African Foundries Limited in Ogijo, Monarch Steel Mill Limited in Sagamu, and Kam Steel Integrated Company, also in Sagamu. The raids were conducted based on intelligence reports suggesting potential malpractices.
Dr. Adamu Abdullahi, the Acting Executive Vice Chairman of the FCCPC, explained the rationale behind the raids during a press briefing. “We received intelligence and surveillance reports indicating that these companies might be involved in anti-competitive behaviour. This prompted our decision to visit and investigate these three firms,” Abdullahi stated.
The commission’s primary concern revolves around the mislabeling and marketing of iron rods. “Some manufacturers are producing 10mm iron rods but labeling and selling them as 12mm, which is misleading and deceptive,” Abdullahi noted. This practice has been linked to the increasing incidents of building collapses in Nigeria, underscoring the importance of the FCCPC’s intervention.
“We are here to take samples of their products and review their records to determine if they are indeed cutting corners. Ensuring the safety of Nigerians is at the core of consumer protection. If we find any evidence of malpractice, we will enforce the full extent of the law,” Abdullahi affirmed.
Despite the seriousness of the allegations, the companies cooperated with the investigation. “Their lawyers were involved throughout the process, which our laws permit. However, it’s important to note that we are still in the information-gathering stage and have not yet found any of the companies liable,” Abdullahi added.
