By Bilesanmi Abayomi
Public concern over the rising cost of building materials in Nigeria has intensified, with commentators and industry stakeholders urging the Federal Competition and Consumer Protection Commission (FCCPC) to take stronger action against alleged anti-competitive practices among domestic cement manufacturers.
The debate has been driven by concerns over the widening gap between the cost of cement production and its retail price in Nigeria. Critics have particularly questioned why cement, produced largely from locally available raw materials such as limestone and clay, continues to command high prices in the domestic market, with reports suggesting that the product is sometimes sold more cheaply in neighbouring West African countries.
‘Nigeria Must Be Business-Friendly, Not Business-Favouring’
Public affairs analyst Ganiyu Olamiji Oyebanjo (GOCO) described the situation as evidence of what he called a broader institutional weakness within Nigeria’s political economy.
Oyebanjo argued that there is an important distinction between creating an environment that is friendly to legitimate businesses and allowing dominant companies to operate without adequate regulatory scrutiny.
“There is a sharp distinction between a government that is genuinely business-friendly and one that acts merely as a friend of business,” Oyebanjo stated.
According to him, a genuinely business-friendly government should establish clear rules, encourage competition, facilitate market entry and reduce the cost of doing business.
He argued that government becomes a “friend of selected businesses” when regulatory institutions fail to adequately scrutinise market dominance, pricing practices and excessive corporate profits.
Call for Stronger Regulatory Action
Oyebanjo criticised what he described as a market structure in which essential construction materials are becoming increasingly unaffordable to ordinary Nigerians while major manufacturing companies continue to report significant profits.
He called on the FCCPC to move beyond preliminary investigations and demonstrate its willingness to enforce competition regulations where violations are established.
Regulatory institutions, he argued, must have the capacity not only to investigate and issue warnings but also to take decisive enforcement action where necessary.
Construction Sector Under Pressure
Also commenting on the broader challenges confronting the construction industry, Omoba Awofeso Rasheed said the rising cost of cement and other building materials was placing significant pressure on operators across the built environment.
“Much bulk assignment is for the relevant Federal ministry and allied agencies to carry out the needful,” Awofeso said, stressing the need for government intervention to address the persistent increase in construction costs.
According to stakeholders, the consequences extend beyond the construction industry, as rising building costs affect housing affordability, infrastructure development and the ability of ordinary Nigerians to undertake construction projects.
Balancing Corporate Interests With Public Welfare
The debate has consequently renewed calls for stronger competition enforcement and greater transparency within Nigeria’s building-materials market.
While manufacturers have legitimate commercial interests and must operate profitably, stakeholders argue that those interests should be balanced against the wider public interest, particularly where products are essential to housing and infrastructure development.
For critics, the rising cost of cement represents more than a question of market pricing. It is increasingly being viewed as a test of the capacity of Nigeria’s regulatory institutions to ensure that private-sector dominance does not undermine broader economic welfare.
As pressure mounts on the FCCPC and other relevant government agencies, stakeholders are calling for greater transparency around production costs, market concentration, pricing structures and competition within the cement industry.