The Federal Competition and Consumer Protection Commission has deepened its investigation into Nigeria’s rising cement prices, saying preliminary findings point to possible anti-competitive practices in a market where a 50kg bag has reached as much as N15,000 in some locations.
The commission said the investigation followed widespread complaints over the cost of cement and a three-month cross-border study comparing Nigeria’s market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
According to the FCCPC, the findings raised questions about why cement remains expensive in Nigeria despite the country’s substantial limestone deposits and large production capacity.
The commission said Nigeria has installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, while domestic consumption stands at about 25 million to 30 million tonnes.
It said the price of a 50kg bag rose from between N9,300 and N9,700 in January to N10,500-N13,000 by mid-year.
By July, the commission said, the product was selling for between N13,000 and N15,000 in some parts of the country.
The price trend has also been documented by independent market reports, with cement selling between N12,000 and N15,000 in July depending on location, brand and distribution costs.
The FCCPC said its cross-border study produced a striking comparison.
In Kenya, a 50kg bag was estimated at about $5.40, equivalent to N7,344, while Tanzania recorded about $4.80, or N6,528.
In Togo, where the commission noted there are no limestone deposits, a bag was said to sell for approximately $6.75, equivalent to N9,180.
The figures have intensified questions about the factors keeping Nigerian cement prices high despite the country’s production capacity and access to raw materials.
The FCCPC said manufacturers and other industry participants had attributed the high prices to energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics.
But the commission said it was testing those explanations against verified production costs, pricing data, capacity utilisation and other market conditions.
The agency said the preliminary findings were strong enough to justify a deeper investigation into possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.
As part of the probe, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry.
The affected companies are expected to provide information covering their pricing methodologies, production levels, capacity utilisation, exports and commercial relationships.
The investigation comes as the cost of cement continues to put pressure on Nigeria’s housing and construction sectors.
A March report by PropComms Africa said cement prices had climbed as high as N15,000 and warned that rising construction costs were contributing to a contraction in housing supply.
The Federal Government has also expressed concern about the impact of cement prices on infrastructure projects and housing delivery.
For consumers, the FCCPC investigation could become significant if it establishes that factors beyond legitimate production and distribution costs are contributing to the price increases.
Explaining the commission’s position, its Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said cement was too important to the economy for questions surrounding its pricing to be ignored.
“Cement occupies a strategic place in the Nigerian economy,” Bello said, noting that its price affects home construction, commercial property, public infrastructure and the wider cost of doing business.
He stressed that the investigation was not designed to prevent businesses from making profits.
According to him, competition law permits legitimate commercial decisions but seeks to ensure that prices and market outcomes are determined by genuine competition rather than unlawful restrictions.
The FCCPC said the investigation would ultimately determine whether Nigeria’s prevailing cement prices are justified by market conditions or reflect practices that undermine competition and hurt consumers.
