The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered evidence suggesting possible illegal manipulation of cement prices in Nigeria following a three-month investigation into the industry.

The Commission disclosed this in a statement on Tuesday, saying its preliminary findings were contained in a 40-page field report prepared by its Anticompetitive Practices Department (ACP) after an extensive cross-border market study.

According to the FCCPC, the investigation was launched in response to widespread complaints about the persistently high cost of cement despite Nigeria’s abundant limestone deposits, significant domestic production capacity, and reported production surplus.

“The preliminary findings, contained in a 40-page field report, follow a cross-border study by the Anticompetitive Practices Department (ACP) of the Commission in response to complaints over the high cost of cement,” the statement said.

The Commission said the investigation sought to determine whether anti-competitive practices or other market distortions were responsible for cement prices that remain significantly higher than those in several African countries.

As part of the probe, the FCCPC said all major cement manufacturers submitted relevant records to investigators except one company, whose identity was not disclosed.

It also noted that publicly available industry estimates indicate that three major cement manufacturers control more than 90 per cent of Nigeria’s installed cement production capacity, raising concerns about market concentration and the potential for anti-competitive conduct.

To benchmark Nigeria’s market, the Commission extended its investigation to Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, comparing factors such as limestone availability, population, production capacity and cement consumption.

The findings revealed that a 50-kilogramme bag of cement sells for about 5.40 dollars (approximately N7,344) in Kenya and 4.80 dollars (about N6,528) in Tanzania. In Togo, which has no limestone deposits, the same quantity sells for 6.75 dollars (about N9,180).

The FCCPC said the price comparisons have intensified concerns over the legality of pricing practices in Nigeria’s cement market and signalled that investigations into possible breaches of competition and consumer protection laws would continue.

The Commission has not yet announced any enforcement action, saying the investigation remains ongoing. #Securitynewsalert.com