— Distribution burden removed for savings to reach consumers. — Dangote

— IPMAN applauds initiative

By Isa Abdul

Free delivery of fuel to filling stations is expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices.
This objective explains why Dangote Petroleum Refinery and Petrochemicals has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa States.

The initiative, which initially covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta, is designed to take petroleum products closer to marketers and retailers while eliminating the cost of transporting products over long distances from the refinery.

By absorbing delivery costs, the refinery is removing a significant expense from the downstream distribution chain and giving marketers more room to operate at competitive prices.

Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was intended to ensure that the benefits of domestic refining translate into savings for businesses and consumers. In her words:

“The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers.

“Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”

The initiative has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which said it would ease some of the financial and logistical pressures facing independent marketers.

National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the initiative addresses a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may wait for days or weeks before their orders are loaded and transported. Ukadike said:

“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers.

“There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”

According to him, Dangote’s delivery arrangement would reduce the period marketers’ funds remain tied up, improve cash flow and allow them to deploy their capital more efficiently.

“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” he said.
Ukadike said the initiative could also help moderate pump prices because transportation costs are ultimately reflected in the price consumers pay.

“You also have less risk, and you have petroleum products at your doorstep. Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs.”

The impact is expected to be particularly significant in markets located far from the refinery, where marketers traditionally incur substantial haulage, vehicle operating, insurance and other logistics costs.

Removing those expenses could improve the economics of supplying distant markets while reducing the risks associated with transporting large volumes of petroleum products over long distances.

Ukadike commended Dangote Refinery for the initiative and urged the company to extend the programme to more locations, particularly in the northern states.

He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.

“This is the beauty of deregulation and competition,” he said.

The expansion comes as Nigeria’s downstream petroleum market adjusts to rising domestic refining capacity and increased competition among suppliers.

The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, has continued to supply refined petroleum products to the domestic market while expanding its presence in international markets.

The free delivery initiative adds a new dimension to the refinery’s role in the downstream sector by targeting not only product availability but also the cost of moving products from the refinery to end markets.

For consumers, the potential benefit is straightforward: lower distribution costs could give marketers greater room to reduce pump prices and improve the competitiveness of petroleum products across the country.

By Seyi Balogun, Lagos

A major change in the running of commercial activities at the nation’s seaports is set to begin with the Nigeria Ports Economic Regulatory Agency (NPERA) officially commencing operations.

Those to head the running of the agency have also been appointed. Chairman of NPERA Governing Board has Dr. Ibrahim Shema, while Dr Pius Akutah, is the Executive Secretary and Chief Executive Officer.

Established under the Nigeria Ports Economic Regulatory Agency Act, 2026, the new agency is to foster order, transparency and predictability to the port business while enhancing Nigeria’s competitiveness as a regional trade hub.

At a press briefing in Lagos, Chairman of the NPERA Governing Board, Dr. Ibrahim Shema, said the development is a major milestone in the evolution of Nigeria’s port system.

Shema highlighted that the new law gives permanent legal backing to economic regulation of the ports, replacing the interim arrangement under which the Nigerian Shippers’ Council operated its role since 2014.

The board chair said the history of port economic regulation dates back to the establishment of the Nigerian Shippers’ Council in 1978 and the concessioning of port terminals in 2006.

But NPERA, under the new framework, he said, will regulate port tariffs and charges, licensing, service standards, competition, commercial disputes and trade facilitation, while also protecting the interests of port users.

The chairman stressed that the agency’s emergence would not create a power struggle with the Nigerian Ports Authority (NPA), which will continue to handle port infrastructure and its landlord responsibilities. In his words:

“This is not about creating competing authorities. It is about establishing a coherent system in which institutions work together, each within its statutory responsibilities.”

He said NPERA would focus on eliminating unnecessary regulatory hurdles, reducing uncertainty for businesses and improving the speed of cargo movement through Nigerian ports.

He identified transparency, fairness, predictability, efficiency and accountability as the principles that would guide the agency’s operations.

On port charges, Shema said the new system would provide clearer information on how regulated tariffs are determined, while giving terminal operators and other service providers a better understanding of their regulatory obligations.

He also promised easier access to dispute-resolution mechanisms and greater use of digital platforms for licensing, tariff management, monitoring, compliance and engagement with stakeholders.

He assured stakeholders that the transition from the Nigerian Shippers’ Council to NPERA would be handled without unnecessary disruption, with attention to staff, assets, liabilities, existing contracts, pending disputes, regulatory records and licences.

He called for cooperation among the NPA, Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Customs Service, terminal operators, shipping companies, freight forwarders, importers, exporters and other stakeholders.

“The establishment of NPERA is a historic achievement, but the harder work begins now,” he said, stressing that the real test would be the agency’s ability to convert the new law into better services, improved efficiency and stronger competitiveness.

The Executive Secretary and Chief Executive Officer of NPERA, Dr. Pius Akutah, equally expressed confidence that the new regulatory regime would significantly improve the business environment at the ports within the next one to two years.

Akutah said the agency would pursue fair pricing, stronger competition and improved trade facilitation.

–Possible price manipulation
–Search for alternative to cement on

By Nick Ibe

The Federal Competition and Consumer Protection Commission has said its preliminary investigation into Nigeria’s cement industry suggests likely manipulation of cement prices, following widespread complaints over the soaring cost of the commodity despite the country’s large production capacity and abundant limestone deposits.

It has also opened an investigation into possible price manipulation in Nigeria’s cement industry after a three-month inquiry raised concerns that prevailing market conditions may not fully explain the cost of the building material.

The preliminary findings followed a cross-border study conducted by the commission’s Anticompetitive Practices Department in response to widespread complaints over the rising cost of cement.

In a statement issued on Tuesday by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, the commission said its investigation compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

An analysis of findings in the FCCPC report showed that the cost of cement in Nigeria is higher than the prices of the same quantity of the commodity in neighbouring African countries.

The study examined the availability of limestone, population, production capacity, consumption and retail prices. The statement read:

“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.”

The commission noted that Nigeria has substantial limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, against domestic consumption of about 25 million to 30 million metric tonnes.

Despite the reported excess capacity and Nigeria’s position as a net exporter to neighbouring countries, the commission said domestic prices had continued to rise.

Market intelligence reviewed by the FCCPC showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, rose to between N10,500 and N13,000 by mid-year. By July, prices of between N13,000 and N15,000 were reported in some parts of the country.

The commission also found that cement 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 bag sold for about $5.40, or N7,344.

In Tanzania, with a population of about 66.3 million and similar cement demand, a bag sold for about $4.80, or N6,528. In Togo, which the commission said has no limestone deposits, cement retailed at about $6.75, or N9,180 per bag.

The FCCPC said the price disparity had raised questions about why Nigeria’s significant production capacity and raw material endowment had not translated into greater downward pressure on prices.

It said industry players had attributed the high prices to energy costs, naira depreciation, imported machinery and spare parts, as well as transportation and logistics expenses.

However, the commission said 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 said.

The FCCPC said the preliminary findings provided sufficient grounds to continue the investigation and determine whether cement prices were driven by legitimate costs or by anti-competitive practices.

The probe will examine possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.

Accordingly, the commission has issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector, demanding records on 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 added.

Commenting, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary because of cement’s strategic importance to the 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 stressed that the investigation was not aimed at dictating how companies should conduct their businesses or limiting 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 comes amid growing pressure on the construction sector, where rising cement prices have increased the cost of housing and infrastructure projects across the country.

OPS, economists react

Building sector leaders and economists explained that the factors behind the high cement prices in Nigeria are compounded; on the one hand, it is largely structural, including transportation of limestone on impassable roads, and on the other hand, it could be influenced by monetary policy, including taxes.

They noted that there is only so much that the FCCPC could do, especially because any government intervention risks could impact free trade.

Reports indicate that, business leaders, including the Chairman of the Lagos Chamber of Commerce and Industry Construction Group, Soji Adeniji, explained that his experience in a recent project confirmed the FCCPC report.

“I was in Canada recently, and a friend of mine who is having a project in Canada was contemplating buying cement from abroad. He was of the opinion that, why can’t we buy cement from Nigeria, as in he wants to import cement from Nigeria and stuff like that.

“By the time he did his calculations, he found out that cement is not as cheap in Nigeria, and that we could arrange for the importation.

Eventually, as the report stated, he found out that Turkey is more price-friendly. He was able to establish a relationship with Turkey. Of course, the Tanzania, Kenya market too was a bit preferable, which boils down to the fact that the price of cement in Nigeria is higher. But then the question would be, what is the location of that kind of high cost?”

Adeniji also acknowledged that the cement market in Nigeria is experiencing a moment of scarcity, but noted that the given reasons may not be as satisfying.

“Why are we having scarcity? Some people are saying because it was raining and therefore limestone deposits, well, that is not, I mean, for me, for the past two weeks now, since the beginning of August, there has not been much rainfall to affect any production. But what is happening to the limestone would be another thing,” the LCCI construction group leader stated.

He noted that other business factors could play a role, adding, “If you check the production line and look at that production chain line, you look at it from limestone to the facility that is an infrastructure facility for production.

“You look at the economy, which is stable, so we cannot be saying that things are changing. The economy is stable, and has been consistent for too long a time. Then other challenges, maybe with the manufacturer.

“You’d notice that Lafarge has just changed. A company called HBM has just bought over Lafarge, meaning that maybe the management issue or something like that. So, when you look at that production, up to the level of distribution, you’ll ask again, why are we experiencing this? They will be telling you logistics, transportation for delivery, and that kind of thing.

He noted that taxation could be another factor. “Some people from the manufacturer’s side too might be talking about the issue of double taxation, and things like that. If the tax regime is not favorable, there’s nothing definite.”

These experts urged the government to invest in improving supply to meet increasing demand, which may have caused exorbitant prices. They recommended working with researchers and the private sector to develop alternatives to cement for concrete making.

On his part, Professor of Economics and Public Policy, University of Uyo, Prof Akpan Ekpo, said the housing sector, is a very crucial part of investment where the cement issue could be a supply problem.

“This could be more demand than supply. So what the government should do is that you look at that sector properly and see whether you can help that sector.”

Ekpo called on the government to help people who need access to finance in order to be in the cement business. “Otherwise,” he said, “you’d keep having this problem of high cost of cement.”

A member of the Nigerian Institute of Building and Yaba College of Technology researcher, Samuel Shonibare, said, “I urged the government to look for alternatives to the use of cement in construction. There has been a lot of research that studied other materials that can be used to replace cement partially in concrete production.

“I’m trying to look at the probability of using rice shells as partial replacements for cement in concrete production. It’s one research project I’m currently working on. Not that I’m even trying, I’m on it.”

He explained that if the country reduces the use of cement in construction, of course, there will be a drastic reduction in the price of cement that is being used in construction. “So the recommendations I would make for now is telling the stakeholders in the construction industry to focus on research that will yield an alternative material to cement. If the producers of cement have discovered that there’s a shift in the usage, I think that will lead to a reduction in the price,” Shonibare noted.

Meanwhile, the Chief Executive Officer of the Centre for Promotion of Private Enterprise, Dr Muda Yusuf, urged the government to carry out more rigorous research to ensure a detailed solution.

He said, “In order for a balanced view, it is important to hear from the FCCPC what the producers and distributors of cement have to say. Secondly, we need to know the cost structure of the cement producers and suppliers in the foreign countries. It will help us gain clear insight.”

Yusuf noted that understanding what factors impact the pricing of cement in the other countries will enrich the FCCPC inquiry.

He added, “The report needs to be more rigorous and show us the cost structure in the other countries. We need to know their cost of production, taxes, logistics and energy. Having the factors that underlie the prices will help (the probe), since it is presented as a comparative report.”