The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over possible manipulation of cement prices in Nigeria, following preliminary findings from an ongoing investigation into the industry.
The commission disclosed the development on Tuesday in a statement by its Director of Corporate Affairs, Ondaje Ijagwu, who said the findings were contained in a 40-page field report produced after a three-month cross-border study by the FCCPC’s Anticompetitive Practices Department.
The investigation was launched amid widespread complaints over the rising cost of cement, a key input in Nigeria’s construction sector.
According to Ijagwu, concerns were particularly heightened by the comparatively high retail price of cement in Nigeria despite the country’s abundant limestone deposits, substantial domestic production capacity and reported excess installed capacity.
“Concerns were raised over the comparatively high retail price of cement in Nigeria compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption,” the statement read.
The commission said most major cement manufacturers cooperated with the investigation by providing requested records, although one company had yet to do so.
“Significantly, all the major cement manufacturers in the country cooperated with the Commission by making their records available except one of them,” it said.
Ijagwu added that publicly available estimates showed that three major companies controlled more than 90 per cent of Nigeria’s installed cement production capacity.
Nigeria’s Cement Prices Under Scrutiny
As part of its investigation, the FCCPC examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, comparing factors including limestone availability, population, production capacity and domestic consumption.
The commission said Kenya, with a population of about 58.6 million, had an estimated domestic cement demand of 9.3 million metric tonnes per annum (MTPA) in 2025, while a 50kg bag of cement reportedly sold for about $5.40, equivalent to N7,344.
In Tanzania, with a population of approximately 66.3 million, domestic cement demand was similarly estimated at 9.3 million MTPA in 2025, with a bag selling for about $4.80, or N6,528.
The FCCPC noted that cement sold for about $6.75, or N9,180, in Togo, despite the country having no known limestone deposits.
By comparison, the commission said the price of cement in Nigeria had risen sharply during the first half of 2026.
“Comparatively, in Nigeria, market intelligence reviewed by the Commission shows that the retail price of a 50kg bag of cement rose significantly during the first half of 2026,” it said.
“A bag reportedly selling for between N9,300 and N9,700 in January was selling for 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 FCCPC said its survey indicated that Nigeria had installed cement production capacity of more than 60 million to 65 million metric tonnes annually, compared with estimated domestic consumption of about 25 million to 30 million metric tonnes.
It further noted that Nigeria was a net exporter of cement to neighbouring countries.
The regulator described the gap between production capacity and domestic consumption as a major concern, particularly because the excess capacity had not resulted in lower domestic prices, as would ordinarily be expected in a competitive market.
FCCPC Tests Manufacturers’ Cost Claims
The commission said industry players had cited energy costs, naira depreciation and its impact on imported machinery and spare parts, as well as transportation and logistics expenses, as factors driving cement prices.
“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 statement said.
“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.”
According to the FCCPC, the next phase of the investigation will establish whether current cement prices are justified by legitimate production costs and market conditions or whether there is evidence of anti-competitive practices.
The commission said it would specifically examine possible coordinated conduct, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices and other actions that could violate the Federal Competition and Consumer Protection Act (FCCPA).
The regulator has also issued notices of commencement of investigation and summonses to key industry players, directing them to provide information and records relating to pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.
‘We’re Not Dictating Business Decisions’ — FCCPC
Explaining the rationale behind the intervention, FCCPC Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the investigation was part of the commission’s responsibility to scrutinise 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,” Bello said.
“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 stressed that the investigation was not aimed at dictating how businesses should operate, but at determining whether the cement market was functioning competitively and whether consumers were benefiting from effective competition.
The FCCPC chief recalled that the commission commenced its nationwide investigation into cement prices on March 12, 2026, following growing concerns over the persistent increase in the cost of the commodity.
[TheCable]
