The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered indications of possible price manipulation in Nigeria’s cement market, despite substantial domestic production capacity and availability of limestone.

The preliminary findings followed a three-month cross-border investigation by the Commission’s Anticompetitive Practices Department (ACP), launched in response to complaints over the rising cost of cement. The findings were contained in a 40-page field report.

The investigation has raised questions over why cement prices continue to rise in Nigeria despite installed production capacity estimated at between 60 million and 65 million metric tonnes annually, against domestic consumption of about 25 million to 30 million tonnes.

The Commission also noted that Nigeria is a net exporter of cement to neighbouring countries, meaning that domestic production is substantially above estimated local demand.

According to the FCCPC, a 50kg bag of cement that sold for between N9,300 and N9,700 in January 2026 rose to between N10,500 and N13,000 by the middle of the year. By July, prices of between N13,000 and N15,000 were reported in some parts of the country.

The development has become a major concern for the Commission because the level of excess capacity would ordinarily be expected to exert downward pressure on prices in a competitive market.

The FCCPC’s investigation also compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, using factors including limestone availability, population, production capacity, domestic consumption and retail prices.

In Kenya, with a population of about 58.6 million and estimated cement demand of 9.3 million tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344. Tanzania, with a population of 66.3 million and similar cement demand, recorded a retail price of about $4.80, or N6,528 per bag.

Even Togo, which the Commission said has no limestone deposits, recorded a price of about $6.75, equivalent to N9,180 per bag.

Nigeria’s higher prices have therefore prompted the Commission to examine whether the explanations provided by cement manufacturers adequately account for the increases.

Industry participants have attributed the cost of cement to energy expenses, depreciation of the naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs.
The FCCPC said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and prevailing market conditions.

The Commission said the preliminary findings were sufficient to warrant continuation of the investigation and that the next phase would determine whether prevailing prices could be justified by legitimate costs and market conditions.

It will also investigate whether there is evidence of coordinated conduct among market participants, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices or other conduct prohibited by competition law.

The Commission has consequently issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector. The companies are expected to provide information relating to their pricing methods, production, capacity utilisation, exports and relevant commercial relationships.

The investigation is particularly significant because of the concentration of the Nigerian cement industry. Publicly available estimates indicate that three major producers account for more than 90 per cent of installed production capacity.

However, the FCCPC stressed that the investigation should not be interpreted as an attempt to dictate the commercial decisions of businesses.

Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said companies were entitled to make legitimate commercial decisions and earn returns on their investments, but competition law was designed to ensure that market outcomes were determined by genuine competition.

He said cement occupied a strategic position in the Nigerian economy because its price affected housing construction, commercial property development, public infrastructure and the general cost of doing business.
“When concerns persist over how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” Bello said.

The Commission’s intervention could therefore have wider implications for the construction sector, where cement remains one of the major cost components.

For consumers and developers, the central issue is whether the current price of cement reflects the actual cost of production and distribution or whether market concentration and other anti-competitive practices are contributing to the sustained increase.

The FCCPC said the ongoing investigation would establish the facts before any further regulatory action is taken.