FCCPC Indicts Dangote, BUA, Others Over Exorbitant Cement Prices

BY CHIKA OKEKE, Abuja

The Federal Competition and Consumer Protection Commission, FCCPC, has indicted Dangote Group, BUA Group and other manufacturers over the exorbitant prices of cement across the country. 

This was even as the commission revealed that cements are cheaper in other African countries of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo compared to Nigeria. 

The indictment followed the results of findings from an industry-wide investigation conducted by the FCCPC, suggesting possible manipulation of prices of cement in the Nigerian market. 

Specifically conducted by the Anticompetitive Practices Department of the Commission, the three-month cross-border study was in response to complaints over the high cost of cement. 

The study examined factors including limestone availability, population, production capacity, consumption and retail prices.

But the FCCPC Director of Corporate Affairs, Ondaje Ijagwu said on Tuesday in Abuja that Nigeria has large limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million metric tonnes.

He said: “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. This is the preliminary summation of the 40-page field reports collated following a three-month cross-border study by the Anticompetitive Practices Department 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.”

Irrespective of abundant mineral deposits in virtually all the 36 States and the Federal Capital Territory, FCT, the price of cement continues to increase astronomically. 

He disclosed that market intelligence indicated that a 50kg bag of cement, which sold between N9,300 and N9,700 in January, rose to between N10,500 and N13,000 by mid-year.  

But by July, the price had risen to N13,000 and N15,000 in some parts of the country.

The FCCPC also discovered that cement was sold at lower prices in some African markets.

In Kenya, where the population is about 58.6 million and cement demand was estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344, though highly endowed with limestone.

In Tanzania, with a population of 66.3 million, the product sold for about $4.80, equivalent to N6,528, while in Togo, which had no limestone deposits, cement sold at about $6.75, or N9,180 per bag.

The statement noted, “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 price in Nairobi is $5.40 (N7,344). Kenya is endowed with limestone. In Tanzania, with a population of 66.3m (72% lower than Nigeria’s) and the domestic cement demand is 9.3m MTPA (2025), a bag of cement sells for $4.80 (N6,528). In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have a limestone deposit.”

The commission indicated that the price differential raised questions about why Nigeria’s significant production capacity and raw material endowment failed to translate into greater downward pressure on prices.

Though the stakeholders had attributed the high prices to energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses, FCCPC assured that it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.

“Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity.

“Information provided by industry participants has identified energy costs, depreciation of the Naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among the factors contributing to cement prices. The Commission is testing these explanations against verified information on costs, production, pricing and market conditions. However, the weight of preliminary findings provides sufficient grounds for the investigation to continue,” the statement added.

The FCCPC hinted that ongoing investigation would determine whether cement prices were being driven by legitimate costs and market conditions or by anti-competitive practices, adding that the probe would examine possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.

To this end, the FCCPC issued Notices of Commencement of Investigation and Summons to Produce key players in the sector, requesting records relating to pricing methodologies, production, capacity utilisation, exports and commercial relationships.

“Next is to determine whether prevailing cement prices can be explained by legitimate costs and market conditions, or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct contrary to the provisions of the FCCPA,” it said.

Reacting, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello informed that the probe was necessary because of cement’s strategic importance to the Nigerian economy.

“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business. When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” Bello said.

He stated that the investigation was not aimed at dictating how companies should conduct their businesses or restricting legitimate profits.

“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that. Its purpose is to protect the competitive process, so that prices, output and other market outcomes are determined by genuine competition rather than conduct that unlawfully restricts it,” Bello said.

The investigation marks FCCPC’s deliberate plans to crash the rising prices of cement that hindered many Nigerians especially the low-income earners from owning affordable homes and accessing durable infrastructure across the country.