The Federal Competition and Consumer Protection Commission (FCCPC) has launched a formal investigation into potential price-fixing and market manipulation across Nigeria's cement sector following a three-month cross-border study that revealed local prices remain disproportionately high despite the country boasting massive production capacity.
Retail prices for a standard 50kg bag of cement surged from N9,300–N9,700 in January to as high as N13,000–N15,000 by July, creating severe cost pressures for housing and infrastructure development. The disparity is particularly striking given that Nigeria produces between 60 million and 65 million metric tonnes of cement annually, far exceeding its domestic consumption of 25 million to 30 million metric tonnes. Despite being a net exporter with rich limestone deposits, Nigerian consumers pay significantly more per bag than neighboring African nations. For instance, equivalent bags retail for approximately $5.40 (N7,344) in Kenya, $4.80 (N6,528) in Tanzania, and $6.75 (N9,180) in Togo, even though Togo lacks domestic limestone resources.
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Cement manufacturers attribute these sharp price increases to high energy tariffs, the devaluation of the Naira affecting imported machinery and spare parts, double taxation, and poor transport logistics. However, FCCPC Executive Vice Chairman Tunji Bello emphasized that while businesses are entitled to fair commercial returns, preliminary evidence warrants formal inquiries to determine if current prices stem from legitimate operational overheads or deliberate anti-competitive conduct like supply restrictions. The commission has served formal summons demanding pricing models and output records from major producers. Meanwhile, economists and construction experts caution against heavy-handed market controls, suggesting instead that the government address logistics bottlenecks and promote alternative materials like rice husk ash to lower demand pressure and construction costs nationwide.
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