JUST IN: Cement cheaper in Kenya, Togo than Nigeria — FCCPC probe

Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) has launched a significant investigation into the country's cement sector, suspecting possible price manipulation. This probe follows a three-month cross-border study that highlighted stark price disparities between Nigerian cement and that sold in other African nations, including Kenya, Tanzania, and Togo.

The FCCPC's preliminary findings suggest that the current high cost of cement in Nigeria cannot be solely attributed to market conditions. This has led the commission to initiate a deeper investigation into potential anti-competitive practices. The study, conducted by the FCCPC's Anticompetitive Practices Department, was prompted by widespread public complaints regarding the escalating price of cement, a crucial building material in Nigeria.

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Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market.

Nigeria boasts substantial limestone deposits and an installed cement production capacity estimated between 60 million and 65 million metric tons annually. However, domestic consumption hovers around 25 million to 30 million metric tons, indicating a significant surplus. Despite this excess capacity and Nigeria's status as a net exporter to neighboring countries, domestic cement prices have seen a continuous upward trend. Market intelligence indicates that a 50kg bag of cement, priced between N9,300 and N9,700 in January, surged to N10,500-N13,000 by mid-year, and reached N13,000-N15,000 in some regions by July.

Comparatively, the FCCPC found that cement is sold at lower prices in other African markets. In Kenya, a 50kg bag costs approximately $5.40 (N7,344), despite a significantly smaller population and lower demand than Nigeria. Tanzania offers similar pricing, with a bag costing around $4.80 (N6,528). Notably, even Togo, a country with no limestone deposits, sells cement for about $6.75 (N9,180) per bag, a price point lower than the prevailing rates in Nigeria. The commission's statement emphasized these discrepancies, questioning the factors driving Nigeria's inflated cement prices.

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In Kenya, for instance, the 58.6 million population (76% lower than Nigeria’s) has domestic cement demand of approximately 9.3m MTPA (metric tonne per annum) in 2025. Retail p