- FCCPC is investigating rising cement prices in Nigeria
- The commission suspects possible anti-competitive practices
- The probe will examine pricing, production and market competition
The Federal Competition and Consumer Protection Commission (FCCPC) has launched a deeper probe into Nigeria’s cement industry after preliminary findings raised concerns that the sharp increase in cement prices may not be entirely driven by normal market forces.
Eko Hot Blog gathered that the commission said the investigation followed a three-month assessment conducted by its Anticompetitive Practices Department in response to complaints from consumers and industry stakeholders over the escalating cost of cement.
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As part of the assessment, the FCCPC compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo. The review considered issues such as access to limestone, production levels, domestic demand, population and retail prices.
In a statement issued on Tuesday by its Director of Corporate Affairs, Ondaje Ijagwu, the commission said the evidence gathered so far provided grounds to examine whether some players in the industry may have engaged in practices capable of influencing prices.
The FCCPC noted that Nigeria possesses large limestone reserves and has installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually. Domestic demand, however, is put at only about 25 million to 30 million metric tonnes each year.
Despite the apparent gap between production capacity and local consumption, the commission said cement prices had continued to climb, even as Nigeria remains capable of supplying some neighbouring markets.
The agency said the price of a 50kg bag of cement moved from roughly N9,300–N9,700 in January to about N10,500–N13,000 by the middle of the year. In July, prices reached between N13,000 and N15,000 in certain locations.
The commission also found significant differences between Nigerian prices and those in some other African countries.
It cited Kenya, where a 50kg bag reportedly sold for about $5.40, equivalent to approximately N7,344. In Tanzania, the same quantity was said to cost around $4.80, or N6,528, while the price in Togo was about $6.75, equivalent to N9,180.
The FCCPC pointed out that the comparison was significant because Togo does not have the same limestone advantage as Nigeria, yet its cement price was still lower.
Cement manufacturers and other industry participants have previously attributed rising prices to several factors, including high energy expenses, the depreciation of the naira, increased costs of imported equipment and spare parts, transportation and logistics.
However, the commission said it was independently examining those explanations by reviewing actual production expenses, pricing structures, capacity utilisation and other relevant market data.
According to the FCCPC, the continuing price increases are particularly concerning because Nigeria’s substantial production capacity would ordinarily be expected to create stronger competitive pressure and help moderate prices.
The expanded investigation will therefore examine whether the price situation is the result of genuine production and distribution costs or whether other practices are contributing to the high cost of cement.
Areas being considered include possible coordination among companies, misuse of market dominance, deliberate restrictions on domestic supply and distribution arrangements that may limit competition.
The commission has already served key companies in the sector with formal notices informing them of the investigation. It has also issued summonses requiring the firms to provide documents and information covering pricing decisions, production figures, capacity utilisation, exports and commercial dealings.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because cement has a direct impact on housing, infrastructure development and the wider Nigerian economy.
Bello stressed that the commission was not seeking to control prices or prevent businesses from making legitimate profits. Rather, he said the objective was to ensure that market competition remained fair and that prices were not being influenced through unlawful practices.
The investigation comes at a time when the construction industry is facing increasing pressure from the rising cost of building materials. The FCCPC said its findings would help determine whether the current price of cement is justified by market conditions or whether competition-related violations are contributing to the burden on consumers.
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