The Federal Competition and Consumer Protection Commission, FCCPC, has uncovered indications of possible price manipulation in Nigeria’s cement market following an industry-wide investigation into the factors driving the rising cost of the building material.
The Commission said the preliminary findings were contained in 40-page field reports compiled after a three-month cross-border study by its Anticompetitive Practices Department, ACP.
According to a statement by the Director of Public Affairs at FCCPC, Ondaje Ijagwu, the investigation was launched in response to widespread complaints over the high cost of cement and concerns that prices in Nigeria appeared comparatively high despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity.
The Commission said all major cement manufacturers in the country cooperated with the investigation by providing relevant records, with the exception of one company.
The FCCPC said publicly available estimates indicate that three major cement manufacturers account for more than 90 per cent of the country’s installed production capacity.
The investigation also covered cement markets in Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria. The Commission assessed factors including limestone availability, population, production capacity and domestic consumption.
In Kenya, with a population of 58.6 million, approximately 76 per cent lower than Nigeria’s, domestic cement demand stood at about 9.3 million metric tonnes per annum, MTPA, in 2025, while a 50kg bag retailed for about $5.40, equivalent to N7,344. Kenya also has substantial limestone deposits.
In Tanzania, which has a population of 66.3 million, about 72 per cent lower than Nigeria’s, domestic cement demand was similarly estimated at 9.3 million MTPA in 2025, while a bag sold for about $4.80, or N6,528.
In Togo, where limestone deposits are unavailable, a bag of cement reportedly sold for about $6.75, equivalent to N9,180.
By comparison, the FCCPC said market intelligence reviewed by the Commission showed that the retail price of a 50kg bag of cement in Nigeria increased significantly during the first half of 2026.
A bag that sold for between N9,300 and N9,700 in January reportedly rose to between N10,500 and N13,000 by mid-year, while prices of between N13,000 and N15,000 were reported in some parts of the country by July.
The Commission said its survey indicated that Nigeria has an installed cement production capacity of between 60 million and 65 million metric tonnes annually, against estimated domestic consumption of approximately 25 million to 30 million metric tonnes.
It added that Nigeria is also a net exporter of cement to neighbouring countries.
The FCCPC expressed concern that the level of excess production capacity had not translated into downward pressure on domestic prices, as would ordinarily be expected in a competitive market.
Industry participants identified energy costs, naira depreciation and its impact on imported machinery and spare parts, as well as transportation and logistics expenses, among factors contributing to the cost of cement.
However, the Commission said it was testing those explanations against verified information on costs, production, pricing and prevailing market conditions.
It said the weight of its preliminary findings provided sufficient grounds for the investigation to continue, with the next phase focused on determining whether prevailing cement prices could be justified by legitimate costs and market conditions or whether there was evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct prohibited by the Federal Competition and Consumer Protection Act, FCCPA.
Accordingly, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector.
The companies are required to provide information and records relating to their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.
Explaining the basis for the Commission’s intervention, the Executive Vice Chairman/Chief Executive Officer of the FCCPC, Mr Tunji Bello, said the investigation reflected the Commission’s responsibility to examine market conditions with significant implications for consumers and the wider 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 competition investigation was not intended to dictate the commercial decisions of businesses, but to determine whether the market was functioning competitively and whether consumers were benefiting from effective competition.
“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. That distinction is important to the work we are undertaking,” he said.
