FCCPC ESTABLISHES POSSIBLE MANIPULATION OF CEMENT PRICES

FCCPC ESTABLISHES POSSIBLE MANIPULATION OF CEMENT PRICES

The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered possible manipulation of cement prices in the Nigerian market following a three month industry-wide investigation.

The FCCPC discloses this in a statement, saying the preliminary findings, contained in a 40-page field report, follows a cross-border study by the Anticompetitive Practices Department (ACP) of the Commission in response to complaints over the high cost of cement.

According to the Commission, the investigation was prompted by concerns over Nigeria’s comparatively high cement prices despite its substantial limestone deposits, domestic production capacity and reported surplus capacity.

It adds that all major cement manufacturers made their records available to the Commission, except one, while publicly available estimates show that three major undertakings account for more than 90 per cent of installed production capacity.

Meanwhile, the FCCPC extends its investigation to Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, comparing limestone availability, population, production capacity and consumption.

A 50-kilogramme bag sells for 5.40 dollars, equivalent to 7,344 naira, in Kenya; 4.80 dollars, or 6,528 naira, in Tanzania; and 6.75 dollars, or 9,180 naira, in Togo, which has no limestone deposits.