The Federal Competition and Consumer Protection Commission, FCCPC, says preliminary findings from its investigation into Nigeria’s cement industry indicate possible price manipulation.
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, following widespread complaints about the rising cost of cement.
The investigation compares Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
According to a statement issued by Ondaje Ijagwu, FCCPC director of corporate affairs, the investigation was prompted by concerns over the comparatively high retail price of cement in Nigeria 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 records, except one.
It added that publicly available estimates show that three major companies account for more than 90 percent of Nigeria’s installed cement production capacity.
As part of the study, the ACP examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, assessing factors including limestone availability, population, production capacity and domestic consumption.
The FCCPC said Kenya, with a population of about 58.6 million, has an estimated domestic cement demand of 9.3 million metric tonnes per annum, MTPA, in 2025, while a 50kg bag of cement retailed for about $5.40, N7,344 in naira, in Nairobi.
In Tanzania, which has a population of about 66.3 million, domestic cement demand was also estimated at 9.3 million MTPA in 2025, while a bag sold for about $4.80, N6,528 in naira.
“In Togo, a bag sells for $6.75, N9,180 in naira. Significantly, Togo does not have limestone deposits,” the commission said.
By comparison, the FCCPC said its market intelligence showed that the retail price of a 50kg bag of cement in Nigeria rose sharply during the first half of 2026.
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A bag reportedly sold for between N9,300 and N9,700 in January, but the price increased to 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 commission said its survey indicated that Nigeria has 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.
Nigeria is also a net exporter of cement to neighbouring countries, according to the FCCPC. The regulator said the level of excess production capacity was a particular concern because it had not resulted in downward pressure on domestic prices, as would ordinarily be expected in a competitive market.
The commission said industry participants had identified energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs, as factors contributing to the high price of cement.
“The commission is testing these explanations against verified information on costs, production, pricing and market conditions,” the statement said. “However, the weight of preliminary findings provides sufficient grounds for the investigation to continue.”
The FCCPC said the next phase of the investigation would determine 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, restrictions on domestic supply, anti-competitive distribution practices or other conduct prohibited under the Federal Competition and Consumer Protection Act.
The commission said it had issued notices of commencement of investigation and summonses to key players in the sector, requiring them to submit information and records relating to their pricing methodologies, production and capacity utilization, exports and relevant commercial relationships.
Explaining the basis for the intervention, Tunji Bello, executive vice-chairman and chief executive officer of the FCCPC, 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,” 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.”
Bello said the 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.
On March 12, Bello announced that the FCCPC had commenced an investigation into cement prices across the country.
The Cable
