FCCPC uncovers cement price manipulation in Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has uncovered potential price manipulation in the cement industry, following a three-month investigation. The commission's Director of Corporate Affairs, Ondaje Ijagwu, revealed the findings in a statement on Tuesday. Preliminary reports from the investigation, which included a cross-border study, suggested anti-competitive practices within the Nigerian cement market.

The issue arose from a surge in complaints about the increasing cost of cement, a crucial commodity for Nigeria's construction sector. The FCCPC pointed out that Nigeria's abundant limestone deposits and significant domestic production capacity had not prevented prices from rising. In response, the commission examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, and Algeria, considering factors such as limestone availability, population, production capacity, and consumption.

Comparative data revealed that a 50kg bag of cement cost $5.40 (N7,344) in Nairobi, Kenya, and $4.80 (N6,528) in Tanzania. In contrast, prices in Togo were $6.75 (N9,180). Meanwhile, Nigerian prices surged from N9,300 to N9,700 per bag in January to N10,500 to N13,000 by mid-year, and even reaching N13,000 to N15,000 in some regions by July.

FCCPC Chairman Tunji Bello emphasized the investigation's importance due to cement's strategic role in the Nigerian economy, affecting housing, commercial property development, public infrastructure, and overall business operations.