FCCPC Probes Cement Prices, Finds Nigeria Costlier Than Kenya, Togo
The Federal Competition and Consumer Protection Commission has opened a further investigation into Nigeria’s rising cement prices, after a three-month study found the product selling at higher prices in Nigeria than in some other African countries.
The FCCPC said its preliminary findings raised concerns about possible anti-competitive practices, particularly given Nigeria’s substantial limestone deposits and large cement production capacity.
The investigation was conducted by the commission’s Anticompetitive Practices Department following widespread complaints about the rising cost of cement.
The study compared Nigeria’s market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors including production capacity, consumption, limestone availability and retail prices.
According to the commission, Nigeria has an estimated installed cement production capacity of 60 million to 65 million metric tonnes annually, while domestic consumption is between 25 million and 30 million tonnes.
Despite the reported excess capacity and Nigeria’s status as a net exporter of cement to neighbouring countries, prices have continued to rise.
The FCCPC said a 50kg bag of cement that sold for between N9,300 and N9,700 in January had risen to between N10,500 and N13,000 by mid-year. By July, prices had reached between N13,000 and N15,000 in some parts of the country.
The commission’s cross-border comparison showed that a 50kg bag sold for about N7,344 in Kenya, N6,528 in Tanzania and N9,180 in Togo.
The FCCPC noted that Togo does not have limestone deposits, raising questions about why Nigeria’s access to raw materials and higher production capacity had not translated into lower domestic prices.
Industry operators have attributed the increases to energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics.
The commission said it was testing those explanations against verified information on production costs, pricing and capacity utilisation.
It is also investigating possible coordinated pricing, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
The FCCPC has issued notices and summons to key industry players, demanding records covering pricing methods, production, exports, capacity utilisation and commercial relationships.
The commission’s Executive Vice Chairman, Tunji Bello, said the investigation was necessary because cement directly affects housing, infrastructure and the cost of doing business.
He stressed that the probe was not intended to prevent legitimate profits, but to determine whether market outcomes were being driven by genuine competition or unlawful practices.
The investigation comes as rising cement prices continue to put pressure on Nigeria’s construction and housing sectors.
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