FCCPC questions high cement prices despite Nigeria’s capacity
The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns about possible manipulation of cement prices in Nigeria. A recent cross-border study by the commission found that cement is cheaper in countries like Kenya and Togo, despite Nigeria’s large production capacity and limestone resources. Tunji Bello, the FCCPC’s Executive Vice Chairman, emphasized the importance of cement to the Nigerian economy and the need for a thorough investigation. The commission is now probing whether high prices are due to legitimate costs or anti-competitive practices.
TLDR
- The FCCPC flagged possible manipulation of cement prices after a three-month investigation.
- Its study found cement is sold at lower prices in Kenya and Togo than in Nigeria.
- Nigeria has significant limestone deposits and production capacity but still faces rising cement prices.
- The commission is investigating if factors like energy costs and naira depreciation fully explain the price hikes.
- Notices have been issued to industry players to provide records on pricing, production, and market practices.
