The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered indications of possible manipulation of cement prices in the Nigerian market and has commenced a probe involving key players in the sector.
The development follows findings from an industry-wide investigation conducted by the commission, according to a statement issued by Ondaje Ijagwu, FCCPC Director of Corporate Affairs.
What you should know
The investigation was triggered by concerns over the comparatively high retail price of cement in Nigeria, despite the country having substantial limestone deposits and significant domestic cement production capacity.
The FCCPC also noted that Nigeria reportedly has surplus installed cement production capacity relative to domestic consumption, raising questions over the factors driving the high prices paid by consumers.
The commission’s findings have now prompted further scrutiny of pricing practices and competitive conditions within the cement industry.
What they are saying
According to the FCCPC, its industry-wide investigation has identified indications of “possible manipulation of prices of cement in the Nigerian market.”
The commission has consequently commenced a probe into key participants in the sector to determine whether pricing practices may be restricting competition or contributing to the elevated cost of cement.
The investigation will examine the factors behind cement pricing in Nigeria, particularly given the country’s abundant limestone resources, domestic production capacity and reported surplus capacity.
The development could increase regulatory scrutiny of Nigeria’s major cement manufacturers and other participants in the value chain as the FCCPC seeks to determine whether consumers are being subjected to unfair or anti-competitive pricing practices.
