By Sunday Ayodele Enikanselu 

Nigeria’s construction ecosystem is under severe strain, and at the heart of this crisis lies the relentless escalation in cement prices—an essential commodity that underpins infrastructure development, housing delivery, and economic expansion.

Across the country, from individual home builders to large-scale contractors, Nigerians are grappling with a sustained and troubling surge in cement prices. This pain is neither speculative nor abstract; it is real, measurable, and economically suffocating. Within a short span—between November 2025 and March 2026—cement prices have reportedly risen by as much as 50 percent, a spike that defies both logic and prevailing macroeconomic trends.

At a time when fuel prices have shown signs of stabilisation and inflationary pressures are beginning to ease, cement prices have remained conspicuously rigid—if not aggressively upward. This divergence raises a fundamental question: why is cement insulated from broader economic corrections?

The answer points, unavoidably, to market structure.

Nigeria’s cement industry is heavily concentrated, with Dangote Cement occupying a dominant position. The Federal Government’s earlier decision to restrict the importation of bagged cement was well-intentioned—designed to promote local production, conserve foreign exchange, and accelerate industrial self-sufficiency. However, that protective policy has, in practice, fostered a quasi-monopolistic market environment.

In such a setting, price determination risks shifting from competitive market forces to producer discretion.

What was conceived as a strategic industrial safeguard has evolved into a structure that enables disproportionate pricing power. The result is a clear form of market distortion, where prices are no longer tightly aligned with production costs or macroeconomic realities, but instead influenced by limited competition and supply concentration.

For millions of Nigerians, the consequences are severe and far-reaching:

Housing affordability is deteriorating at an alarming rate.

Infrastructure project costs are escalating beyond projections.

Small and medium-scale builders are being pushed out of the market.

Government capital projects are facing budget overruns and delivery delays.

This is no longer a sector-specific concern; it is a national economic challenge with direct implications for employment, urban development, and social stability.

Equally troubling is the apparent inertia from regulatory and consumer protection institutions. Prolonged silence or delayed intervention risks being interpreted as tacit acceptance, thereby emboldening further price escalation.

This trajectory is clearly unsustainable.

The President, Bola Ahmed Tinubu,  has demonstrated courage in undertaking bold structural reforms across critical sectors. However, the cement pricing crisis now demands urgent, targeted, and decisive policy intervention.
Several strategic options are both available and necessary:

Immediate regulatory engagement
The Federal Government should urgently convene cement manufacturers to provide full transparency on pricing structures, cost drivers, and supply dynamics.

Competition enhancement measures
A temporary or controlled review of the ban on bagged cement importation could introduce competitive pressure, serving as an effective corrective mechanism against excessive pricing.

Price moderation framework
While rigid price controls may be counterproductive, a guided pricing benchmark can help prevent exploitative extremes without undermining market principles.

Strengthening consumer protection oversight
Consumer protection agencies must transition from passive observation to active enforcement, ensuring that market practices remain fair, transparent, and accountable.

Incentivising new market entrants
Encouraging additional local and foreign investment in cement production will, over time, dilute market concentration and foster healthy competition.

The issue at stake is not the success of local producers—indeed, their growth is a national asset—but the balance between profitability and economic responsibility. No policy designed to protect industry should inadvertently expose citizens to unchecked market dominance.

Nigeria stands at a delicate inflection point. The rising cost of cement is not merely an economic statistic; it is a daily burden borne by millions. Left unaddressed, it risks deepening public frustration within an already pressured economic climate.

This is, therefore, a defining moment for responsive and people-centered governance.

Mr President, decisive action in this sector will not only restore balance to the cement market but will also reinforce public confidence in the government’s commitment to protecting citizens from exploitative economic practices.

The time to act is now—firmly, strategically, and in the overriding interest of Nigeria and Nigerians.
Professor Enikanselu, retired, wrote from Lagos.