FCCPC cement probe highlights flaws in Nigeria's protectionist industrial policy
Last week's FCCPC report found a preliminary basis for investigating possible price manipulation in Nigeria's cement industry following public complaints about high costs. The Premium Times editorial argues this reveals how Nigeria's protectionist industrial policy—using tariffs and tax waivers to shield local businesses—often enables price gouging without improving competitiveness, transferring money from consumers to business profits without fostering real economic growth.
The piece contends that genuine development requires removing constraints to business: cutting red tape, fixing infrastructure chokepoints, and improving logistics—not just erecting barriers that let inefficient industries thrive. As incentives for rapid development, the author insists protection must include clear expiry clauses requiring businesses to compete globally after set periods, otherwise protected sectors remain 'babyish' and unproductive.
For Nigerians, this debate affects everything from housing costs (cement being a key construction input) to broader economic efficiency. When industries avoid competition via protectionism, consumers face higher prices while the economy misses productivity gains from true market discipline.
With cement prices impacting construction affordability and industrial policy shaping business costs nationwide, should Nigeria prioritize dismantling barriers to entry over protecting domestic firms through tariffs, and how would such reforms affect your expenses or business operations?