Lawmakers in Nigeria have urged the government to curb the monopoly of top cement makers in the country in order to encourage more competition and reduce prices.
The Big three in the industry which includes Dangote Cement Plc, Lafarge Africa Plc, and BUA Group effectively control production in Nigeria. According to the Nigerian Senate, the monopolies make the market susceptible to price-fixing practices.
The rising competition and the rising cost of building materials have become a cause for concern in the built ecosystem.
Dangote Cement is owned by Africa’s richest man, Aliko Dangote, who operates plants across 10 countries and is building the continent’s largest oil refinery in the West African nation.
As reported by Bloomberg, the lawmakers revealed that more government incentives such as concessionary loans and larger tax rebates for new entrants could make the market more competitive. This may in turn bring down the cost of cement that’s 240% higher in Nigeria than the global average. More locally produced cement is also needed to reduce a housing deficit of 30 million units.