The Federal Competition and Consumer Protection Commission (FCCPC) has launched a deeper investigation into Nigeria’s cement market after finding that prices in the country are higher than those in several African markets despite substantial domestic production capacity.
The commission said its preliminary findings suggest possible manipulation of cement prices, following a three-month cross-border investigation by its Anticompetitive Practices Department.
The investigation, conducted in response to widespread complaints over rising cement prices, compared Nigeria with Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
According to the FCCPC, a 50-kilogramme bag of cement sold for about $5.40, equivalent to ₦7,344, in Kenya, while the equivalent price in Tanzania was about $4.80, or ₦6,528. In Togo, where the commission noted that there are no limestone deposits, a 50kg bag sold for approximately $6.75, or ₦9,180.
The comparisons contrast with prices in Nigeria, where the commission said a 50kg bag that sold for between ₦9,300 and ₦9,700 in January had risen to between ₦10,500 and ₦13,000 by mid-year. By July, prices had reached between ₦13,000 and ₦15,000 in some parts of the country.
The FCCPC said the disparity was particularly concerning because Nigeria has substantial limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million tonnes.
That implies significant excess capacity, yet domestic prices have continued to rise. The commission also noted that Nigeria is a net exporter of cement to neighbouring countries.
However, the regulator has not concluded that cement manufacturers or other industry participants have violated competition laws.
Industry players have cited energy costs, the depreciation of the naira, higher costs of imported machinery and spare parts, transportation and logistics as factors behind rising prices.
The FCCPC said it is testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.
The expanded investigation will examine possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
The commission said the preliminary findings provide sufficient grounds for the investigation to continue, but stressed that the inquiry will determine whether current cement prices are justified by legitimate market costs or reflect anti-competitive practices.
The outcome could have significant implications for Nigeria’s construction and housing sectors, where cement remains a major input and sustained price increases have added to the cost of building homes and infrastructure.
