The Federal Competition and Consumer Protection Commission (FCCPC) says preliminary findings from its investigation into the cement industry indicate possible price manipulation in the market.
The findings are contained in a 40-page field report compiled after a three-month cross-border study by the Commission’s Anticompetitive Practices Department (ACP).
According to a statement on Tuesday, Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC, said the investigation followed widespread complaints over the high cost of cement, a major component of the country’s construction industry.
‘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 reads.
‘Significantly, all the major cement manufacturers in the country cooperated with the Commission by making their records available except one of them.
‘Publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country.’
As part of the investigation, the Commission said the ACP examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, considering factors including limestone availability, population, production capacity and domestic consumption.
The agency said Kenya, with a population of about 58.6 million, or 76 percent lower than Nigeria’s, had estimated domestic cement demand of 9.3 million metric tonnes per annum (MTPA) in 2025.
According to the FCCPC, the retail price of a bag of cement in Nairobi was $5.40 (N7,344), noting that Kenya is endowed with limestone deposits.
In Tanzania, with a population of about 66.3 million, domestic cement demand was also estimated at 9.3 million MTPA in 2025, while a bag of cement was reported to sell for $4.80 (N6,528).
‘In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have limestone deposit,’ the Commission said.
‘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.
‘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 has installed cement production capacity of more than 60 million to 65 million metric tonnes annually, while estimated domestic consumption stands at approximately 25 million to 30 million metric tonnes.
The Commission noted that Nigeria is a net exporter of cement to neighbouring markets.
It said the level of excess production capacity was a particular concern because it had not translated into downward pressure on domestic prices, as would ordinarily be expected in a competitive market.
‘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 reads.
‘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 Commission, the next phase of the investigation will determine whether prevailing cement prices can be explained 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 contrary to the Federal Competition and Consumer Protection Act (FCCPA).
The FCCPC said it had issued notices of commencement of investigation and summonses to produce to key players in the sector, requiring them to submit information and records relating to their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.
Explaining the basis for the intervention, Tunji Bello, Executive Vice-Chairman and Chief Executive Officer (CEO) of the FCCPC, said the investigation reflected the Commission’s responsibility to examine market conditions that have significant consequences 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,’ he 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.’