FCCPC Uncovers Possible Cement Price Manipulation After Three-Month Investigation
FCCPC Uncovers Possible Cement Price Manipulation After Three-Month Investigation
FCCPC Uncovers Possible Cement Price Manipulation After Three-Month Investigation
The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered indications of possible manipulation of cement prices in Nigeria following a three-month investigation into the industry.
The Commission disclosed this in a statement, saying its preliminary findings are contained in a 40-page field report prepared following an industry-wide and cross-border assessment by its Anticompetitive Practices Department (ACP).
The investigation was launched in response to widespread concerns over the rising cost of cement and Nigeria’s comparatively high prices, despite the country’s substantial limestone deposits, domestic production capacity and reported surplus capacity.
According to the FCCPC, all major cement manufacturers provided relevant records to the Commission, with the exception of one company. Publicly available estimates indicate that three major industry players control more than 90 per cent of Nigeria’s installed cement production capacity.
FCCPC Compares Nigerian Prices With Other Countries
As part of the investigation, the Commission extended its assessment beyond Nigeria to Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, comparing factors including limestone availability, population, cement production capacity and consumption.
The FCCPC said its findings raise questions about the relationship between production costs, market structure and the prices consumers pay for cement in Nigeria.
For comparison, the Commission noted that a 50-kilogramme bag of cement sells for about $5.40 (₦7,344) in Kenya and $4.80 (₦6,528) in Tanzania, while the price in Togo, a country without significant limestone deposits, is about $6.75 (₦9,180).
The Commission said the preliminary findings would be subjected to further analysis as the investigation continues, stressing the importance of ensuring a competitive and transparent cement market that protects consumers from unfair pricing practices.
The ongoing probe is expected to provide greater clarity on the factors driving cement prices in Nigeria and determine whether any companies or market practices have violated the country’s competition laws.
FCCPC Uncovers Possible Cement Price Manipulation After Three-Month Investigation
