The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over possible price manipulation in Nigeria’s cement industry, following a three-month cross-border investigation into the sharp rise in the price of the building material.
The Commission said its preliminary findings suggest that prevailing cement prices may not be fully explained by legitimate production and distribution costs, despite Nigeria’s substantial limestone deposits, significant domestic production capacity and reported excess installed capacity.
The investigation was conducted by the Anticompetitive Practices Department (ACP) in response to widespread complaints over the rising cost of cement, a development with significant implications for housing, infrastructure and the wider Nigerian economy.
According to the FCCPC, the findings were contained in 40-page field reports compiled during the investigation, which extended beyond Nigeria to cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.
The Commission said three major cement manufacturers account for more than 90 per cent of the country’s installed production capacity, while all major manufacturers cooperated with the investigation by providing records, except one.
The FCCPC said its investigators examined factors including limestone availability, population, production capacity and domestic consumption in comparing Nigeria with other markets.
In Kenya, for instance, where the population is about 58.6 million and domestic cement demand stood at approximately 9.3 million metric tonnes per annum in 2025, a bag of cement reportedly retailed for about $5.40, equivalent to N7,344.
In Tanzania, with a population of about 66.3 million and similar domestic cement demand of 9.3 million metric tonnes, a bag sold for about $4.80, or N6,528.
Even in Togo, which the Commission noted does not have limestone deposits, a bag of cement reportedly sold for about $6.75, equivalent to N9,180.
The situation in Nigeria, however, has been markedly different.
The Commission said market intelligence showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January 2026, increased to between N10,500 and N13,000 by the middle of the year.
By July, prices of between N13,000 and N15,000 were reportedly recorded in some parts of the country.
The FCCPC said its survey also established that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, against estimated domestic consumption of between 25 million and 30 million metric tonnes.
Nigeria, it added, is also a net exporter of cement to neighbouring countries.
The Commission described the situation as particularly concerning because such substantial excess production capacity would ordinarily be expected to create downward pressure on prices in a competitive market.
Industry participants, according to the FCCPC, have attributed the high prices to factors including rising energy costs, depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.
However, the Commission said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and prevailing market conditions.
It said the preliminary findings were sufficient to warrant continuation of the investigation to determine whether current cement prices are justified by legitimate costs and market conditions or whether anti-competitive practices may be involved.
Among the issues being examined are possible coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices and other conduct that may contravene the Federal Competition and Consumer Protection Act (FCCPA).
Consequently, the FCCPC said it had issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector.
The companies are expected to submit information and records covering their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.
Explaining the intervention, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary because of the strategic importance of cement to the Nigerian 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 added: “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 stressed that the investigation was not aimed at dictating how businesses should operate or preventing companies from making legitimate profits.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that,” he said.
According to him, the objective is to ensure that prices, output and other market outcomes are determined by genuine competition rather than unlawful conduct capable of restricting competition and harming consumers.
“The 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. That distinction is important to the work we are undertaking,” Bello said.
The outcome of the investigation could have significant implications for Nigeria’s construction sector, particularly at a time when the high cost of building materials continues to place pressure on housing development, infrastructure projects and the cost of doing business.
The FCCPC said the ongoing investigation would establish whether the current pricing structure reflects genuine market forces or whether consumers are being exposed to anti-competitive practices.
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