FCCPC Investigates Three Steel Firms In Ogun State For Substandard Iron Rods

The Federal Competition and Consumer Protection Commission (FCCPC) has stormed three steel manufacturing firms in Ogun State to investigate alleged manufacturing of substandard iron rods and other trade anti-competition practices.

The affected companies were African Foundries Limited (AFL), Ogijo, Ogun State; the Monarch Steel Mill Limited, Sagamu, Ogun State, and the Kam Steel Integrated Company, Sagamu, Ogun State.

The Acting Executive Vice Chairman of FCCPC, Dr. Adamu Abdullahi, who addressed journalists on Friday at the premises of AFL, said that the reason the commission visited these companies was based on intelligence that anti-competitive behaviour might be going on as alleged.

Abdullahi said: “Essentially, we got intelligence and surveillance reports that these companies in question are allegedly involved in some anti-competitive behaviour. That is the reason we decided to come to these three companies.

“So that we can take samples of their products and see what it is that they do by going through the records they gave to us.”

He suspected “that there are false, misleading and deceptive as well as unfair market practices,” noting that what has been going on is that some manufacturers would produce 10mm iron rods but label and market same as 12 mm iron rods.

This market behaviour, according to him, is among the major causes of building collapse in Nigeria.

Abdullahi said: “We are talking here about the issue of safety of Nigerians, which is the core essence of consumer protection.

“We have to ensure the safety of our population. What is happening in the building space so far is worrisome to government and all well meaning citizens of this country.

“So we have to look at their process to find out if they are cutting corners. If they are doing so, we will apply the full wrath of the law. That is why we are here.”

Commenting on the attitude of the companies during the fact finding mission, Abdullahi said that all the three companies were very cooperative to the commission.

“That is why we had no issues. Naturally, we would expect that their lawyers would have advised them and our laws allow that.”

He, however, emphasised that the FCCPC is on a fact finding mission and have not found any of the companies liable yet.

“We are still at information gathering stage. After which we have to go back to our office and allow forensic experts to look at the information that we returned with.

“What they will take out from all the materials we have gathered will then guide our findings,” Abdullahi said.

Dike Onwuamaeze

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