By: Tijani Salako.
The Federal Competition and Consumer Protection Commission (FCCPC) has established preliminary evidence suggesting possible manipulation of cement prices in the Nigerian market following a three-month cross-border investigation into the industry.
This was disclosed in a statement shared on the website of the agency, emphasising the need for further investigation to determine whether prevailing cement prices are justified by legitimate costs and market conditions or whether they are being driven by anti-competitive practices.
The preliminary findings were contained in a 40-page field report compiled by the Commission’s Anticompetitive Practices Department (ACP) following an industry-wide investigation launched in response to widespread public complaints over the high cost of cement, a major input in Nigeria’s construction industry.
The Commission said concerns were heightened by the comparatively high retail price of cement in Nigeria despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.
According to the FCCPC, all major cement manufacturers in the country cooperated with the investigation by making their records available, except one company.
It added that publicly available estimates indicate that three major undertakings account for more than 90 per cent of installed cement production capacity in Nigeria, a development the Commission said warranted closer scrutiny of the competitive structure of the market.
The investigation extended to cement markets in Sub-Saharan Africa, including Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria.
The ACP adopted several metrics for the comparison, including the availability of limestone, the basic raw material for cement production, population, production capacity and domestic consumption.
In Kenya, for instance, the country’s population of 58.6 million, which is 76 per cent lower than Nigeria’s, recorded domestic cement demand of approximately 9.3 million metric tonnes per annum (MTPA) in 2025. The retail price of cement in Nairobi was put at $5.40, equivalent to about N7,344, while the country is also endowed with limestone.
In Tanzania, with a population of 66.3 million, about 72 per cent lower than Nigeria’s, domestic cement demand stood at approximately 9.3 million MTPA in 2025, while a 50kg bag of cement sold for about $4.80, equivalent to N6,528.
In Togo, a bag of cement sold for about $6.75, or N9,180, despite the country having no significant limestone deposits.
By comparison, market intelligence reviewed by the Commission showed that the retail price of a 50kg bag of cement in Nigeria rose significantly during the first half of 2026.
The FCCPC said a bag that sold for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year, while prices of between N13,000 and N15,000 were reported in some parts of the country by July.
The Commission’s survey further indicated that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, compared with estimated domestic consumption of approximately 25 to 30 million metric tonnes.
It noted that Nigeria is also a net exporter of cement to neighbouring markets, raising questions over why substantial excess production capacity had not translated into lower domestic prices.
“Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity,” the FCCPC said.
Information provided by industry participants identified energy costs, depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs, among factors contributing to the current price of cement.
However, the Commission said it was testing those explanations against verified information on costs, production, pricing and prevailing market conditions.
It stressed that the weight of the preliminary findings provided sufficient grounds for the investigation to continue.
The next phase, according to the FCCPC, would determine whether prevailing cement prices can be explained by legitimate costs and market conditions or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct contrary to the provisions of the Federal Competition and Consumer Protection Act.
Accordingly, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector as it continues its investigation into the pricing and competitive practices within the industry.
