FCCPC probes Dangote, BUA, other cement makers as prices cross N15,000
By Aboki Forex —
The Federal Competition and Consumer Protection Commission (FCCPC) has summoned Dangote Cement, BUA Cement and HBM Nigeria, formerly Lafarge Africa, as part of a probe into why Nigerians pay more for cement than buyers in other African countries.
The regulator said its three-month cross-border assessment raised preliminary concerns about possible price manipulation and anti-competitive practices. It stressed that the investigation is ongoing and no wrongdoing has been established.
Why the regulator stepped in
Nigeria has one of Africa's largest cement industries. Installed production capacity is estimated at more than 60 to 65 million metric tonnes annually. Domestic consumption is put at about 25 to 30 million tonnes. Nigeria is also a net exporter of cement to neighbouring countries.
Despite that capacity, a 50kg bag sold for about N9,300 to N9,700 in January. By mid-year, prices had risen to between N10,500 and N13,000. In July, some locations recorded N13,000 to N15,000. More recent reports show Dangote Cement has crossed N15,000 in some markets.
The FCCPC's market intelligence suggests these prices are hard to explain. In Nairobi, Kenya, a 50kg bag sells for about $5.40, or N7,344 using the commission's conversion. Tanzania is about $4.80, or N6,528. Togo, which does not have significant limestone deposits, sells at $6.75, or N9,180.
What the FCCPC is demanding
The commission has issued formal Notices of Commencement of Investigation and Summons to Produce to the manufacturers. It is demanding detailed information on pricing methodologies, production levels, capacity utilisation, exports and commercial relationships.
Industry participants have cited rising energy costs, naira depreciation, expensive imported machinery and spare parts, and transportation and logistics as factors pushing prices up. The regulator wants to test those explanations against verified financial, production and market data, according to The Nation.
There is also a supply-side explanation. Some operators link recent price spikes to temporary scarcity, including plant maintenance and restrictions affecting access to some depots, rather than a fresh official price increase by manufacturers.
What it means for Nigerians
Building-sector operators say erratic cement prices are already feeding into construction costs, property prices and rents, making home ownership even more difficult. They have urged the FCCPC to conclude its investigation and publish its findings while encouraging stronger competition and greater transparency in the market.
The FCCPC must now decide whether the price increases are justified by legitimate costs and market conditions or whether coordinated conduct, abuse of market power, supply restrictions or other anti-competitive practices are involved. Until that answer emerges, Nigerians keep paying a premium for cement despite having the limestone, the factories and the capacity, Leadership reports.