The Federal Competition and Consumer Protection Commission (FCCPC) has commenced an investigation into major cement manufacturers, including Dangote, over suspected price manipulation and other anti-competitive practices amid rising cement prices across Nigeria.
The investigation follows a three-month industry-wide and cross-border study by the Commission’s Anticompetitive Practices Department (ACP), launched in response to widespread complaints over the high cost of cement, a key input in the construction sector.
According to the Commission, its preliminary findings have raised concerns over Nigeria’s comparatively high cement prices despite the country’s abundant limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.
In a statement issued on Tuesday, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the investigation compared conditions in the Nigerian cement market with those in other countries, including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.
The Commission said all major cement manufacturers in Nigeria cooperated with the study by providing relevant records, except one company. It added that publicly available estimates indicate that three major companies account for more than 90 per cent of the country’s installed cement production capacity, raising concerns over the level of market concentration.
The ACP examined several market indicators, including limestone availability, population size, cement production capacity and domestic consumption, to understand the factors influencing cement prices across the different markets.
For instance, Kenya, with a population of about 58.6 million, had estimated domestic cement demand of 9.3 million metric tonnes in 2025, while a 50kg bag sold for about $5.40, equivalent to approximately N7,344. The country also has significant limestone deposits.
Similarly, Tanzania, with a population of about 66.3 million and estimated cement demand of 9.3 million metric tonnes in 2025, recorded a retail price of about $4.80, or N6,528, for a 50kg bag.
In Togo, where the Commission noted that there are no limestone deposits, a 50kg bag sells for approximately $6.75, equivalent to N9,180.
The FCCPC contrasted these figures with developments in Nigeria, where its market intelligence showed a sharp increase in cement prices during the first half of 2026.
According to the findings, a 50kg bag that sold for between N9,300 and N9,700 in January rose 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’s survey also showed that Nigeria has an 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, further raising questions for the Commission about why the country’s substantial production capacity has not translated into lower domestic prices.
The FCCPC said the level of excess capacity would ordinarily be expected to create competitive pressure among manufacturers, potentially resulting in lower prices as producers compete for consumers and market share.
However, the Commission said its preliminary findings indicate that the expected downward pressure has not materialised to the extent ordinarily anticipated in a competitive market.
Industry participants have attributed the high cost of cement to several factors, including rising energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.
The FCCPC said it is testing these explanations against verified information on production costs, pricing, capacity utilisation and prevailing market conditions to determine whether the price increases are justified by legitimate business costs.
The Commission said its preliminary findings provide sufficient grounds for the investigation to continue, with the next phase focused on determining whether prevailing cement prices can be adequately explained by legitimate market conditions or whether there is evidence of anti-competitive conduct.
Such conduct, the FCCPC said, could include coordinated pricing, abuse of market power, deliberate restriction of domestic supply, anti-competitive distribution arrangements or other practices prohibited under the Federal Competition and Consumer Protection Act.
Consequently, the Commission 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, export activities and relevant commercial relationships, among other issues.
Explaining the rationale for the intervention, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was part of the Commission’s responsibility to examine market conditions with significant consequences for consumers and the broader 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 said the Commission had a duty to establish the facts whenever concerns persisted about the functioning of an important market.
Bello stressed that the investigation should not be interpreted as an attempt by the FCCPC to dictate the commercial decisions of businesses or prevent companies from making legitimate profits.
According to him, businesses are entitled to make commercial decisions and earn returns on their investments, provided such decisions do not unlawfully undermine competition.
“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 added.
