The Federal Competition and Consumer Protection Commission (FCCPC) has commenced an investigation into possible price manipulation and other anti-competitive practices in Nigeria’s cement market, following concerns over the sharp rise in the price of the building material.
The Commission said preliminary findings from a three-month, industry-wide and cross-border investigation by its Anticompetitive Practices Department (ACP) indicate possible manipulation of cement prices in the Nigerian market.
According to a statement signed on Tuesday by Ondaje ljagwu, Director, Corporate Affairs, The investigation followed widespread complaints from consumers and other stakeholders over the high cost of cement, despite Nigeria’s substantial limestone deposits, significant domestic production capacity and reported excess installed capacity relative to domestic consumption.
According to the Commission, the preliminary findings were contained in 40 pages of field reports compiled from its investigation across Nigeria and selected cement-producing and consuming markets in Africa.
The investigation covered markets in Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria. The Commission said it assessed factors including limestone availability, population, production capacity, domestic consumption and retail prices.
The FCCPC said its findings showed a significant disparity between Nigeria’s cement prices and those in some comparable markets.
In Kenya, for instance, where the population is about 58.6 million, domestic cement demand was estimated at 9.3 million metric tonnes per annum (MTPA) in 2025, with a 50kg bag selling for about $5.40, equivalent to N7,344 based on the Commission’s conversion.
Similarly, in Tanzania, with a population of about 66.3 million and cement demand of approximately 9.3 million MTPA, a bag reportedly sold for $4.80, or N6,528.
In Togo, where there are no significant limestone deposits, a bag of cement was reported to sell for $6.75, equivalent to N9,180.
The figures contrast with the Nigerian market, where the retail price of a 50kg bag of cement increased substantially in the first half of 2026.
The Commission said market intelligence showed that cement sold for between N9,300 and N9,700 per bag in January but had risen to between N10,500 and N13,000 by mid-year.
By July, prices ranging from N13,000 to N15,000 were reported in some parts of the country.
The development has raised questions about the extent to which production costs, market structure and competition dynamics are influencing cement prices in Nigeria.
The FCCPC said Nigeria currently has installed cement production capacity of more than 60 to 65 million metric tonnes annually, compared with estimated domestic consumption of approximately 25 to 30 million metric tonnes.
It also noted that Nigeria is a net exporter of cement to neighbouring countries.
The Commission said the existence of substantial excess production capacity would ordinarily be expected to create competitive pressure capable of moderating domestic prices.
‘Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity,’ it said.
The FCCPC, however, acknowledged that industry participants had identified several factors that could explain the high cost of cement.
These include rising energy costs, depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.
The Commission said it was testing these explanations against verified information on production costs, output, pricing and prevailing market conditions.
The preliminary findings, it said, are not a final determination of wrongdoing but provide sufficient grounds for the investigation to continue.
The next phase will determine whether prevailing cement prices can be justified by legitimate costs and market conditions or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct prohibited under the Federal Competition and Consumer Protection Act (FCCPA).
As part of the investigation, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry.
The companies have been directed to provide information and records relating to their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.
The Commission said all major cement manufacturers in the country cooperated with the investigation by making their records available, except one company.
Publicly available estimates indicate that three major cement manufacturers account for more than 90 percent of installed cement production capacity in Nigeria, further highlighting the importance of examining the structure and competitive dynamics of the market.
Explaining the Commission’s intervention, Tunji Bello, its Executive Vice Chairman and Chief Executive Officer, said cement was strategically important to the Nigerian economy because its price affects housing, infrastructure development, commercial property and the overall cost of doing business.
‘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.
He said the Commission had a responsibility to establish the facts where concerns persist over the functioning of an important market.
According to him, the investigation is not aimed at dictating how businesses should operate or preventing companies from earning legitimate returns on their investments.
Rather, he said, the objective was to determine whether the market was operating 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,’ Bello said.