Nigerian Cement Sector Faces Challenges with High Prices, Calls for Policy Intervention

The Nigerian cement sector, dominated by Dangote Cement, Lafarge Africa, and BUA Cement, is experiencing high prices despite local sourcing of raw materials like limestone. These major players control 95% of the local market, leading to concerns about market power and consumer welfare.

A policy paper authored by Waziri Adio emphasizes the need for urgent intervention to address the structural anomalies in the industry. The paper reveals that from 2015 to 2025, the average price of cement in Nigeria in dollar terms was significantly higher than the African average, impacting affordability and development.

While cement production costs are cited as high due to factors like taxes, energy costs, and transport bottlenecks, the industry's high profit margins raise questions about the need for regulatory scrutiny and policy interventions. The paper calls for a balance between private interests and public welfare to enhance consumer welfare and economic development in Nigeria's cement sector.