JUST IN: Cement cheaper in Kenya, Togo than Nigeria — FCCPC probe

Provincial Competition and Consumer Protection Commission (FCCPC) has initiated an investigation into the potential manipulation of cement prices in Nigeria, following a three-month study comparing the country's market with those in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria, and Togo. The FCCPC discovered that despite Nigeria's substantial limestone deposits and cement production capacity estimated at between 60 and 65 million metric tonnes annually, the domestic prices of cement had continued to rise.

According to the FCCPC, the cost of a 50kg bag of cement, which had been N9,300 to N9,700 in January, increased to N10,500 to N13,000 by mid-year and reached N13,000 to N15,000 in some areas by July. The commission identified market intelligence indicating that a 50kg bag of cement that sold for $5.40 (N7,344) in Kenya, where the population is 58.6 million and demand is 9.3 million metric tonnes, cost $4.80 (N6,528) in Tanzania, where the population is 66.3 million and demand is similar.

However, in Togo, a country without limestone deposits, the same bag sold for $6.75 (N9,180). The FCCPC noted that the significant production capacity in Nigeria had not resulted in downward pressure on domestic prices, as would typically be expected in a competitive market with excess capacity.