Business and Economy
FCCPC Probes Why Nigerians Pay More for Cement than African Neighbours
–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.”
By Michael Lim
Kwara State Government has announced plans to buy shares in the Dangote Refinery Initial Public Offering (IPO) for female teachers in the state.
The plan is part of a new initiative to promote investment and financial inclusion among educators.
Governor AbdulRahman AbdulRazaq disclosed this on Monday in Ilorin while speaking at an event organised to mark the 2026 World Teachers’ Day.
The Governor also presented about N120 million in awards to outstanding teachers, head teachers, principals and schools.
The governor said the state would purchase 10,000 shares for 10 female teachers in each of the outstanding public schools.
He added that the scheme would also be extended to outstanding retired female teachers.
He said the initiative was being developed in partnership with the Dangote Foundation to encourage women to move beyond earning income to building assets through investment and share ownership.
“Dangote has created the Dangote Foundation, providing subscription grounds for women only. For every ten shares we purchase they will give a grant of another ten shares, making twenty shares,” AbdulRazaq said.
He added, “Our hardworking women teachers in TESCOM and SUBEB will get ten shares each. We will also extend it to the retired female teachers so that peace and prosperity will go round them.”
AbdulRazaq directed the Head of Service, Dr Olufunke Mercy Shittu, to work out modalities for capturing qualified retired female teachers under the initiative.
The governor said the investment programme was part of wider efforts to improve the welfare and economic opportunities available to teachers in the state.
He said his administration would continue to prioritise teachers because of their central role in determining the quality of education and, ultimately, the future of the state.
“We will continue to do our part, including improving your welfare and working conditions on a sustainable basis. We are confident that you and other stakeholders will always do your part,” he said.
The governor also presented financial awards totalling about N120 million to outstanding education stakeholders across different categories.
While 29 best principals and head teachers received N29 million, 119 outstanding teachers received N59.5 million.
Eleven serving and retired university dons were presented with N22 million under the Pioneer Professorship Recognition Awards, while three schools received N9 million for the Best Kept School Award.
AbdulRazaq said the recognition was designed to reward sacrifice and motivate educators to sustain their contributions to the state’s education system.
He said the administration’s education reforms had focused on improving both the quality of teaching and learning, citing merit-based recruitment, continuous professional development, improved school infrastructure and the use of technology and data through KwaraLEARN.
The governor also highlighted the regular promotion of teachers and implementation of the 27.5 per cent Teachers’ Specific Allowance as measures aimed at improving their welfare.
According to him, the interventions were yielding results, particularly in the performance of Kwara pupils at national and international competitions.
The Chairman of the State Universal Basic Education Board (SUBEB), Prof Sheu Raheem Adaramaja, announced that the 2026 promotion exercise for eligible teachers had been approved by the state government.
Adaramaja said the promotion examination would hold on October 10, adding that Kwara would be the first state in the federation to conduct its 2026 promotion exercise for eligible teachers.
Commissioner for Education and Human Capital Development, Dr Lawal Olohungbebe, said the award programme demonstrated that hard work deserved recognition.
He urged the awardees to sustain their performance and encouraged teachers across the state to continue developing themselves professionally.
The former Kwara State Chairman of the Nigeria Labour Congress (NLC) and keynote speaker, Comrade Umar Farooq, said supporting teachers should be regarded as an investment in children, communities and society.
The state Chairman of the Nigeria Union of Teachers (NUT), Comrade Yusuf Wahab Agboola, thanked the government for its interventions in school infrastructure and teachers’ welfare, while urging it to adopt the national harmonised retirement age for teachers.
*Plans intervention or games for young entrepreneurs
By Aliyu Musa
THE University of Maiduguri business management class of 1997 at its first reunion in Abuja emphasized the need to support young entrepreneurs and provide them the necessary support such that they can contribute to the micro economic growth and eliminate devices that falls below acceptable moral and legal standards.
The class of 97 also agreed to constitute an investment committee that will assist the forum pursue its goals ahead of its proposed 30th anniversary slatted for 2027.
Former deputy speaker of the House of Representatives,Honourable Babangida Nguroje who also spoke at the reunion called on his course mates to deploy their professional strength in ways that will strengthen the nation’s economy , give back to their university and groom upcoming entrepreneurs through trainings and offer opportunities for them to grow .
Honourable Nguroje emphasized the need to boost the micro economy of Nigeria through investments that will further create jobs for the teeming youths and grow the country’s domestic growth .
According to him ,”It is my honour to be in your midst this evening and a rare opportunity for all of us to be united again after several years.
“It is particularly important that this union is coming at a time that this country needs our expertise as students of figures ,data and research .
“This is out first reunion and I am glad that we have developed in our individual capacities and areas of interests .
“Much as we are here basically to catch up again , it is important that discourse matters that will send out footprints in our university by identifying areas we can assist our university , particularly our department .
“We must also look at ways of making this gathering annually and how best we can lift those in need and create opportunities for all of us .”
One of the organizers of the reunion Mrs Julianna Aiwerioghene said the class of 97 will take seriously the issues of empowerment and as managers ,it will be interested in grooming younger business owners to again their full potentials .
“We will be interested in harnessing their capabilities and help them build themselves through trainings and other forms of support .
“We want to see a productive generation for the younger ones and we will be subsequently looking at helping each other and continually look at how we will remain united and grow together. Progress is what we take seriously and we will also not forget out university in the process .”
–Job losses loom
A wide disparity in the ability of companies listed on the Nigerian Exchange Limited, NGX, to cover their debt obligations with cash has emerged, with some companies holding several times more cash than debt, while others have cash covering only a fraction of their outstanding borrowings.
Analysts noted that the cash/debt position of some of the listed companies could affect investment, employment, production and capital-market development.
The available data obtained by Vanguard, covering 40 companies in the second quarter of 2026, showed a combined total debt of N3.9 trillion, out of which 18 firms have cash/debt ratios of at least 1.0 times, indicating that their cash holdings are equal to or greater than their total debt, while 22 companies have ratios below 1.0 times, meaning their total debt exceeds cash on hand.
The cash/debt ratio measures a company’s ability to meet its debt obligations using cash available to it. A ratio above 1.0 times generally indicates that a company has sufficient cash to cover its total debt, although the ratio does not, on its own, measure overall financial strength or debt-servicing capacity.
Cash/debt analysis
On the table of the cash/debt analysis, HBM Nigeria led, with a cash/debt ratio of 319.07 times, based on cash of N393.68 billion and total debt of N1.23 billion.
It was followed by UPDC Real Estate Investment Trust, with 283.73 times, from cash of N7.15 billion against debt of only N25.2 million, while eTranzact International recorded 214.89 times, with N23.69 billion cash and N110.24 million debt.
CWG also recorded a high ratio of 211.1 times, with cash of N7.4 billion compared with total debt of N35.06 million.
Other companies with substantial cash coverage included Unilever Nigeria, with a ratio of 44.8 times; Berger Paints, 18.4 times; Industrial & Medical Gases, 13.56 times; and NASCON Allied Industries, 12.72 times.
Companies with stronger cash cover
The available data, as gathered by Vanguard, also showed that several major companies had cash exceeding their debt.
Vitafoam Nigeria recorded 5.88 times, while UPDC posted 5.47 times. International Breweries had 3.34 times, Sterling Financial Holdings 3.08 times and May & Baker Nigeria 2.83 times.
Livestock Feeds recorded 1.94 times, Julius Berger Nigeria 1.85 times, Chams Holdings 1.65 times and Dangote Cement 1.31 times. Skyway Aviation recorded 1.19 times.
The figures suggest that these companies have, based purely on cash on hand relative to total debt, a degree of liquidity protection against debt obligations.
However, analysts caution that a high cash/debt ratio should not automatically be interpreted as evidence that a company is more profitable or efficiently managed.
Debt exceeds cash in 22 companies
On the other hand, Aradel Holdings recorded a cash/debt ratio of 0.96 times, with cash of N1.77 trillion against total debt of N1.84 trillion.
Ellah Lakes recorded 0.81 time, John Holt 0.77 times, Academy Press 0.72 times and Eterna 0.69 times. ABC Transport had 0.58 times, while Cadbury Nigeria and Fidson each recorded 0.53 times.
The ratio fell further among BUA Cement, at 0.46 times; BUA Foods, 0.44 time; Beta Glass, 0.34 time; Conoil, 0.20 times; Guinness Nigeria, 0.16 times; and Champion Breweries, 0.16 times.
DAAR Communications recorded 0.14 time, while Cutix and Japaul Gold & Ventures each recorded 0.11 times.
Geregu Power had 0.09 times, FTN Cocoa Processors 0.08 times, C & I Leasing 0.07 time, Chellarams 0.05 times and Caverton Offshore Support Group the lowest at 0.03 times.
This means, for example, that Caverton’s N2.46 billion cash position represents only a small fraction of its N87.15 billion total debt, while Chellarams had N235.16 million cash against N5.12 billion debt.
Implications for companies
Market analysts said the cash/debt ratio provides investors with an important indication of the liquidity pressure facing companies, particularly in an environment where the cost of borrowing remains significant.
They noted that companies with ratios substantially above 1.0 time have greater cash buffers with which to meet debt obligations, fund working capital and withstand temporary disruptions in revenue.
However, they said excessive cash holdings could also raise questions about whether funds are being deployed productively.
According to the analysts, a very high cash/debt ratio may be positive from a liquidity perspective, but investors should examine why the company is holding so much cash instead of investing it in productive assets, expanding operations, reducing debt or returning capital to shareholders.
For companies with ratios below 1.0 time, the concern is different. A low ratio does not necessarily mean that a company is in financial distress because businesses generate operating cash flows and may have access to undrawn credit facilities and other sources of liquidity.
Nevertheless, analysts said a persistently low ratio could expose companies to refinancing and interest-rate risks, particularly where debt repayments fall due before sufficient operating cash is generated.
Implications for shareholders
For shareholders, the ratio has implications for both risk and returns.
Companies with relatively strong cash positions may have greater flexibility to service debt, maintain operations during difficult periods and finance expansion without immediately resorting to additional borrowing or equity dilution.
On the other hand, companies with low cash/debt ratios may face higher financial risk if earnings or operating cash flows weaken.
Analysts, however, stressed that shareholders should not make investment decisions based solely on the ratio.
They said investors should consider profitability, operating cash flow, interest expenses, debt maturity profile, working-capital requirements, asset quality and management’s capital-allocation strategy alongside the cash/debt position.
Implications for Nigerian economy
At the broader economic level, analysts said the cash/debt position of listed companies could affect investment, employment, production and capital-market development.
Companies carrying heavy debt burdens may devote a larger proportion of their earnings to interest and principal repayments rather than expansion, technology, employment and dividend payments.
Where debt is used productively, however, leverage can support expansion and increase productive capacity.
The implication, analysts said, is that the quality and use of debt matter as much as the amount of debt itself.
A company with a low cash/debt ratio but strong and predictable operating cash flow may be able to manage its obligations effectively, while a company with a high cash/debt ratio but weak operations could still face business challenges.
For the Nigerian economy, the ability of listed companies to maintain adequate liquidity is therefore important because financially stable businesses are better positioned to sustain production, employment, tax payments and investment.
Cash/debt ratio not a standalone measure
Analysts therefore advised investors to treat the cash/debt ratio as one component of a wider financial-health assessment.
The data shows a clear divide: while some NGX-listed companies have cash positions several times larger than their debt, others have debt that is many multiples of their available cash.
The difference highlights the varying approaches of companies to borrowing, liquidity management and capital allocation and provides investors with an additional indicator for assessing financial risk.
Analysts’ comments
Ambrose Omordion, Chief Operating Officer, InvestData Consulting Limited, said investors should not assess debt in isolation but should examine earnings, cash flow, interest-cover ratios and the maturity profile of borrowings.
He said a high level of debt could magnify shareholder returns when borrowed funds are invested in profitable projects, but could also magnify losses when earnings and cash flows weaken.
The same principle applies to the cash-to-debt ratio.
A company with a low ratio but strong and predictable operating cash flow may remain financially stable, while a company with a high ratio but weak operations may face longer-term challenges if its cash balance is not being replenished.
Impact on companies
For the companies themselves, high cash cover provides an important cushion in an environment of elevated interest rates.
Companies that need to refinance maturing loans may face higher finance costs when new loans are contracted. Those with significant cash can repay some debt, negotiate from a stronger position with lenders or fund part of their capital expenditure internally.
This could reduce finance costs and improve profitability.
Commenting on the ratios, economic and communications expert, Clifford Egbomeade, said: “The interpretation of cash and debt should go beyond the ratio itself,” stressing that investors should examine the quality and utilisation of the cash.
According to him: “A company with substantial cash and low debt has greater flexibility to respond to economic shocks, finance expansion or take advantage of investment opportunities without immediately resorting to expensive borrowing.
“This is particularly relevant in Nigeria where corporate borrowing costs remain relatively high.
“Some companies deliberately retain cash to finance inventories, capital expenditure, acquisitions, dividend payments and other strategic commitments.
“In addition, cash and cash equivalents may include restricted funds or short-term investments that cannot necessarily be deployed immediately.
“This means that shareholders should examine the composition of cash before drawing conclusions about a company’s liquidity.”
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