The Federal Competition and Consumer Protection Commission, FCCPC, says preliminary findings from a three-month industry-wide investigation suggest possible manipulation of cement prices in Nigeria.
The Commission, in a statement by its Director, Corporate Affairs, Ondaje, revealed that the findings emerged from a 40-page field report compiled by its Anticompetitive Practices Department, ACP, following a cross-border study prompted by widespread complaints over the high cost of cement.
It stated that the investigation covered Nigeria, Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, with the Commission examining factors including limestone availability, population, production capacity and domestic consumption.
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According to the FCCPC, “three major cement manufacturers account for more than 90 per cent of Nigeria’s installed production capacity, while the country has an estimated annual production capacity of between 60 and 65 million metric tonnes against domestic consumption of approximately 25 to 30 million metric tonnes.
“Nigeria is also a net exporter of cement to neighbouring countries, yet the substantial excess capacity has not produced the downward pressure on prices ordinarily expected in a competitive market,” it stated.
The statement disclosed that market intelligence reviewed by the FCCPC showed that the price of a 50-kilogramme bag of cement rose from between N9,300 and N9,700 in January 2026 to between N10,500 and N13,000 by mid-year, with prices reaching N13,000 to N15,000 in some parts of the country by July.
The Commission said the disparity was particularly concerning when compared with prices in some other African markets.
“In Kenya, where the population is about 58.6 million and domestic cement demand is approximately 9.3 million metric tonnes per annum in 2025, a bag of cement sold for about $5.40, equivalent to N7,344.
“In Tanzania, with a population of about 66.3 million and similar cement demand, the retail price is about $4.80 or N6,528.
“In Togo, where limestone deposits are absent, a bag is sold for about $6.75, equivalent to N9,180.”
The FCCPC said major cement manufacturers cooperated with the investigation by providing records, with the exception of one company.
“Industry participants have cited energy costs, naira depreciation and its impact on imported machinery and spare parts as well as transportation and logistics costs, as factors contributing to the price of cement.”
The Commission said it is testing those explanations against verified information on production costs, pricing and market conditions.
It said the preliminary findings “provide sufficient grounds for the investigation to continue, with the next phase focused on determining whether cement prices are justified by legitimate costs and market conditions or whether anti-competitive practices are involved.
“These include possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.
“The FCCPC has consequently issued Notices of Commencement of Investigation and Summons to Producer and key players in the sector, requiring them to provide information on pricing methodologies, production, capacity utilisation, exports and relevant commercial relationships,” the state added.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr Tunji Bello, said the investigation was necessary because of cement’s importance to the Nigerian 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 investigation was not intended to dictate the commercial decisions of businesses but to establish whether the market is operating competitively.
“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.
The FCCPC said the investigation will continue as it examines the evidence and determines whether any conduct in the cement market contravenes the provisions of the Federal Competition and Consumer Protection Act.
