The Federal Competition and Consumer Protection Commission (FCCPC) has placed Nigeria’s cement giants under formal investigation, summoning them to explain why a 50kg bag now sells for as high as N15,000 despite the country’s huge limestone deposits and excess production capacity.
The move follows a three-month, cross-border probe by the Commission’s Anti-Competitive Practices Department, triggered by widespread complaints over the “rooftop” prices of cement.
Probe Launched Over Suspected Price Manipulation
In a statement signed by Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said findings gave “reasonable grounds” to investigate possible manipulation of cement prices in the Nigerian market.
The Commission has issued “Notices of Commencement of Investigation and Summons to Producer” to key players. The companies are required to provide detailed records on pricing methodologies, production and capacity utilisation, exports, and commercial relationships.
Three firms control more than 90% of Nigeria’s cement market: Dangote Cement Plc, BUA Cement Plc, and HMB Nigeria Plc, formerly Lafarge Africa Plc.
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Excess Capacity, Yet Prices Climb
The FCCPC said its concern deepened after comparing Nigeria with other markets. Despite an installed production capacity of 60 to 65 million metric tonnes annually against domestic consumption of 25 to 30 million metric tonnes, prices remain among the highest in the region.
Nigeria is also a net exporter to neighbouring countries. The Commission extended its survey to Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, benchmarking against limestone availability, population, and consumption.
“Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity,” the statement read.
Market Integrity At Stake, Says FCCPC Boss
Executive Vice Chairman/CEO, Mr. Tunji Bello, said the investigation is about protecting consumers and the economy.
“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business,” Bello stated.
He stressed the scrutiny is not to dictate prices, but to determine “whether the market is functioning competitively and whether consumers are receiving the benefits that effective competition should provide.”
