Nigerian cement prices higher than in other African countries, FCCPC investigation suggests price manipulation
The Federal Competition and Consumer Protection Commission FCCPC has initiated an investigation into potential price manipulation within Nigeria's cement industry. This follows a three-month inquiry and a cross-border study by the commission's Anticompetitive Practices Department, which revealed that cement prices in Nigeria are higher compared to those in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria, and Togo. Despite Nigeria possessing significant limestone deposits and an annual production capacity of 60 million to 65 million metric tonnes against a domestic consumption of 25 million to 30 million metric tonnes, prices have continued to rise. For instance, a 50kg bag of cement, which cost between N9,300 and N9,700 in January, increased to N10,500 to N13,000 by mid-year, and up to N13,000 to N15,000 by July in some areas. In contrast, a 50kg bag sold for approximately N7,344 in Kenya, N6,528 in Tanzania, and N9,180 in Togo. Industry players attribute the high prices to energy costs, naira depreciation, imported machinery and spare parts, and transportation expenses. The FCCPC is currently testing these explanations against verified information on production costs, pricing, and market conditions. The investigation will examine possible coordinated conduct, abuse of market power, restriction of domestic supply, and anti-competitive distribution practices. The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, emphasized the strategic impo
