FCCPC probes cement makers over possible price manipulation

The Federal Competition and Consumer Protection Commission (FCCPC) investigation has suggested “possible manipulation of prices of cement in the Nigerian market” and has commenced a probe against key players in the sector.

This is based on findings from its industry-wide investigation, according to a statement issued by Ondaje Ijagwu, FCCPC Director, Corporate Affairs.

The report was based on concerns raised over the comparatively high retail price of cement in Nigeria compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.

What the FCCPC is saying

The FCCPC’s finding is based on the preliminary field reports collated following a three-month cross-border study by the Anticompetitive Practices Department (ACP) of the Commission, undertaken in response to widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.

All the major cement manufacturers in the country were said to have cooperated with the Commission by making their records available except one of them.

• “Publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country. 
• “The ACP investigations extended to markets in Sub-Saharan Africa like Kenya, Tanzania and South Africa as well as Egypt, Morocco and Algeria. 
• “Metrics adopted included the availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption,” the statement stated.

The Commission stated that in Kenya, the 58.6 million population (76% lower than Nigeria’s) has domestic cement demand of approximately…