Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission (FCCPC) suggest possible manipulation of prices of cement in the Nigerian market.
A statement by the FCCPC said this was the preliminary summation of the 40-page field reports collated following a three-month cross-border study by the Anticompetitive Practices Department (ACP) of the commission. It was undertaken in response to widespread public complaints over the high cost of cement, a common staple in the Nigeria’s construction industry.
In Kenya, for instance, the 58.6 million population (76% lower than Nigeria’s) has domestic cement demand of approximately 9.3m MTPA (metric tonne per annum) in 2025. Retail price in Nairobi is $5.40 (N7,344). Kenya is endowed with limestone.
In Tanzania, with population of 66.3m (72% lower than Nigeria’s) and the domestic cement demand is 9.3m MTPA (2025), a bag of cement sells for $4.80 (N6,528).
In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have limestone deposit.
Comparatively, in Nigeria, market intelligence reviewed by the Commission shows that the retail price of a 50kg bag.
Concerns had been raised over the comparatively high retail price of cement in Nigeria compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.
“All the major cement manufacturers in the country cooperated with the Commission by making their records available except one of them,” said the statement said.
Publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country.
The ACP investigations extended to markets in Sub-Saharan Africa like Kenya, Tanzania and South Africa as well as Egypt, Morocco and Algeria.
Metrics adopted included the availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption.
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