FCCPC Investigates Three Steel Companies for Substandard Products, Unfair Practices

By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) visited three steel manufacturing companies to investigate the alleged production of substandard iron bars and alleged involvement in other anticompetitive business practices .

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

The Acting Executive Vice Chairman of FCCPC, Mr Adamu Abdullahi, who led the operation, told journalists on Friday at the AFL premises that the agency’s visit to the three companies was informed by intelligence agencies that they might be involved in unfair and anti-competitive practices.

The visit was a joint operation of the FCCPC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the National Information Technology Development Agency (NITDA) and the Nigeria Police Force (NPF).

Mr Abdullahi said the team was there to take samples of their products and review their records to determine what they were doing.

“False, misleading, deceptive and unfair trade practices have been reported. Some manufacturers produce 10mm iron rods but label and market them the same as 12mm. This practice is one of the major causes of building collapse in Nigeria.

“We are talking about the issue of security of Nigerians, which is the essence of consumer protection. We must ensure the safety of our population. What is happening in the construction sector worries the government and all well-meaning citizens. So we need to look at their process to see if they’re saving money. If they do, we will apply the full force of the law. This is why we are here,” he said.

Commenting on the attitude of the companies during the fact-finding mission, Mr Abdullahi said the three companies were very cooperative with the commission.

“That’s why we had no problem. Naturally, we would expect their lawyers to tell them that our laws allow this process,” he added.

He stressed that the FCCPC was still in the investigation stage and had not yet found any of the companies responsible.

“We are still in the information gathering phase, after which we must return to our office and allow forensic experts to review the information we came back with. What they take away from all the materials we have gathered will then guide our discoveries,” he said.

Mr. Abdullahi disclosed that the agency was working in collaboration with the Standard Organization of Nigeria (SON), the Manufacturing Association of Nigeria (MAN) and the Nigerian Society of Engineers (NSE), to ensure compliance with industry standards .

“We had meetings with them and they gave us technical advice on what we should pay attention to during these fact-finding missions. And that’s exactly what we are doing,” he added.

Related