The Federal Competition and Consumer Protection Commission has opened an investigation into possible price manipulation in Nigeria’s cement industry following complaints over the rising cost of the commodity.
The commission said its preliminary findings suggested that prevailing cement prices may not be fully explained by market conditions, despite Nigeria’s substantial limestone deposits and installed production capacity of between 60 million and 65 million metric tonnes annually.
The investigation compared Nigeria’s market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
According to the FCCPC, a 50kg bag of cement that sold for between N9,300 and N9,700 in January had risen to as much as N13,000-N15,000 in some areas by July.
The commission noted that prices were lower in some African markets, raising questions about Nigeria’s domestic pricing structure.
Industry players have attributed rising prices to energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics.
The FCCPC said it would test these explanations against verified production costs and market data while investigating possible coordinated conduct, abuse of market power and restrictions on domestic supply.
The commission has issued notices and summons to major industry players, demanding information on pricing, production, capacity utilisation, exports and commercial relationships.
FCCPC chief Tunji Bello said the investigation would protect competition without preventing legitimate businesses from making profits.
