The Federal Competition and Consumer Protection Commission (FCCPC) says its preliminary investigation into Nigeria’s cement industry has uncovered indications of possible price manipulation.
The findings are contained in a 40-page field report produced after a three-month cross-border study by the commission’s Anticompetitive Practices Department (ACP).
According to a statement issued on Tuesday, August 18, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the investigation was launched following widespread complaints about the rising cost of cement, a key input in Nigeria’s construction sector.
The commission said it was particularly concerned that cement prices in Nigeria remained relatively high despite the country’s abundant limestone deposits, substantial production capacity and reported surplus capacity compared with domestic consumption.
“Concerns were raised over the comparatively high retail price of cement in Nigeria compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption,” the statement reads.
“Significantly, all the major cement manufacturers in the country cooperated with the Commission by making their records available except one of them.
“Publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country.”
As part of the investigation, the ACP examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. The study considered factors including limestone availability, population, production capacity and domestic consumption.
The FCCPC said Kenya, with a population of about 58.6 million, recorded estimated domestic cement demand of 9.3 million metric tonnes per annum (MTPA) in 2025.
According to the commission, a 50kg bag of cement sold for about $5.40 (N7,344) in Nairobi, despite Kenya also having significant limestone deposits.
In Tanzania, which has a population of approximately 66.3 million, cement demand was similarly estimated at 9.3 million MTPA in 2025, while a bag sold for about $4.80 (N6,528).
“In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have limestone deposit,” the commission said.
The regulator said its market intelligence showed a significant increase in cement prices in Nigeria during the first half of 2026.
“Comparatively, in Nigeria, market intelligence reviewed by the Commission shows that the retail price of a 50kg bag of cement rose significantly during the first half of 2026.
“A bag reportedly selling for between N9,300 and N9,700 in January was selling for 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 estimated Nigeria’s installed cement production capacity at more than 60 million to 65 million metric tonnes annually, against domestic consumption of approximately 25 million to 30 million metric tonnes.
It also noted that Nigeria is a net exporter of cement to neighbouring countries.
According to the FCCPC, the significant gap between installed capacity and domestic consumption is particularly concerning because the excess capacity has not resulted in lower prices, as would ordinarily be expected in a competitive market.
Industry participants have cited several factors for the high prices, including energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.
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“Information provided by industry participants has identified energy costs, depreciation of the Naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among the factors contributing to cement prices,” the statement reads.
“The commission is testing these explanations against verified information on costs, production, pricing and market conditions.
“However, the weight of preliminary findings provides sufficient grounds for the investigation to continue.”
The FCCPC said the next stage of the probe would establish whether prevailing cement prices are justified by legitimate costs and market conditions or whether there is evidence of coordinated conduct, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices or other breaches of the Federal Competition and Consumer Protection Act (FCCPA).
The commission has issued notices of commencement of investigation and summonses to key players in the sector, requiring them to provide records and information on pricing methods, production, capacity utilisation, exports and relevant commercial relationships.
Explaining the reason for the intervention, FCCPC Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the investigation was part of the commission’s mandate to examine market conditions with significant implications 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,” he said.
“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 controlling the commercial decisions of cement manufacturers but at determining whether the market was operating competitively and whether consumers were benefiting from effective competition.
The FCCPC had earlier announced on March 12 that it had commenced an investigation into cement prices across Nigeria.