FCCPC Launches Fresh Probe Into Nigeria's Soaring Cement Prices

Nigeria's Federal Competition and Consumer Protection Commission has opened a new investigation into possible price manipulation in the country's cement sector following preliminary findings that domestic prices exceed those in neighbouring African nations. The probe was triggered by a three-month cross-border comparative study conducted by the commission's Anticompetitive Practices Department in response to mounting public complaints about rising cement costs.

The research revealed that Nigeria's cement prices cannot be adequately explained by standard market conditions, despite the country possessing substantial limestone reserves and significant production infrastructure. Investigators found that just three major cement producers control over 90 per cent of the domestic market, a concentration that has drawn regulatory scrutiny.

The commission's statement, released this week through its Director of Corporate Affairs, indicated that the pricing structure warrants deeper examination for potential anti-competitive conduct. The investigation compared Nigerian prices to those in Kenya, Tanzania, and Togo, finding that consumers in those countries pay less for cement even as Nigeria boasts greater production capacity.

This disparity has elevated construction costs nationwide, affecting both residential and commercial projects. The 40-page preliminary report compiled from field studies forms the basis for the expanded inquiry now underway.

The FCCPC's Executive Vice Chairman stated that the commission is pursuing the matter as a priority following the initial findings. The fresh investigation will examine whether the three dominant companies are engaging in practices that restrict competition or artificially elevate prices beyond what market fundamentals would support.

No timeline has been provided for the completion of this deeper probe.