The Federal Competition and Consumer Protection Commission (FCCPC) has flagged possible manipulation of cement prices in Nigeria, following a three-month investigation into the persistent rise in the cost of the building material despite the country’s substantial production capacity and abundant limestone deposits.
The commission said its preliminary findings suggested that prevailing cement prices could not be fully explained by prevailing market conditions, prompting it to deepen its investigation into possible anti-competitive practices in the industry.
The findings emerged from a cross-border study by the FCCPC’s Anticompetitive Practices Department, launched in response to widespread complaints over the high cost of cement.
According to a statement issued on Tuesday by Ondaje Ijagwu, the FCCPC Director of Corporate Affairs, the study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The commission assessed limestone availability, population, production capacity, domestic consumption and retail prices across the markets.
“Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market,” the commission said.
Nigeria has installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, against domestic consumption of about 25 million to 30 million metric tonnes, according to the FCCPC.
Despite the reported excess capacity and Nigeria’s position as a net exporter of cement to neighbouring countries, domestic prices have continued to climb.
The commission said a 50kg bag of cement that sold for between N9,300 and N9,700 in January had risen to between N10,500 and N13,000 by mid-year. By July, prices had reached between N13,000 and N15,000 in some parts of the country.
The FCCPC’s cross-border comparison also highlighted significant price differences.
In Kenya, where the population is about 58.6 million and domestic cement demand was estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344.
In Tanzania, with a population of about 66.3 million and similar cement demand, the product sold for approximately $4.80, or N6,528 per bag.
Even in Togo, which the commission said has no limestone deposits, a 50kg bag sold for about $6.75, equivalent to N9,180.
The price disparity has raised questions within the commission over why Nigeria’s large production capacity and access to raw materials have not translated into lower domestic prices.
Cement manufacturers have cited high energy costs, naira depreciation, the rising cost of imported machinery and spare parts, transportation and logistics expenses as major drivers of prices.
However, the FCCPC said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.
“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 commission said its expanded investigation would determine whether current prices were being driven by legitimate costs or anti-competitive conduct.
It is examining possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
The FCCPC has consequently issued Notices of Commencement of Investigation and Summons to Produce to key industry players, requiring them to submit records covering pricing methodologies, production, capacity utilisation, exports and commercial relationships.
Tunji Bello, executive vice chairman and chief executive officer of the FCCPC, said the investigation was necessary because of cement’s strategic importance to the 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.
He stressed that the investigation was not intended to dictate how companies operate or prevent legitimate profits.
“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,” he said.
The investigation comes as Nigeria’s construction and housing sectors grapple with rising input costs, with cement prices becoming a major contributor to the cost of building homes, commercial properties and infrastructure.
The outcome of the FCCPC probe could therefore have significant implications for cement manufacturers, distributors, construction companies and consumers, particularly if the commission establishes evidence of conduct that has artificially kept domestic prices above levels justified by underlying market costs.
