By our Reporter
The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered preliminary indications of possible price manipulation in Nigeria’s cement market following a three-month industry-wide investigation.
The Commission disclosed this in a statement on Tuesday, August 18, 2026, saying the findings were contained in 40-page field reports compiled by its Anticompetitive Practices Department (ACP) after a cross-border study initiated in response to widespread complaints over the rising cost of cement.
According to the FCCPC, concerns over cement prices were heightened by the comparatively high retail price of the product in Nigeria despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to local consumption.
The Commission said all major cement manufacturers in the country cooperated with the investigation by making their records available, except one company.
It noted that publicly available estimates indicated that three major companies account for more than 90 per cent of installed cement production capacity in Nigeria.
The investigation covered selected markets across Sub-Saharan Africa, including Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria. The Commission assessed factors including limestone availability, population, production capacity and domestic consumption.
The FCCPC cited Kenya as an example, noting that the country, with a population of about 58.6 million, had domestic cement demand of approximately 9.3 million metric tonnes per annum in 2025, while a 50kg bag of cement reportedly sold for about $5.40, equivalent to N7,344.
In Tanzania, with a population of about 66.3 million and similar cement demand of approximately 9.3 million metric tonnes in 2025, a bag reportedly sold for about $4.80, equivalent to N6,528.
In Togo, where the country does not have significant limestone deposits, a bag reportedly sold for about $6.75, equivalent to N9,180.
The Commission said its market intelligence showed that cement prices in Nigeria rose significantly during the first half of 2026.
According to the findings, a 50kg bag of cement that sold for between N9,300 and N9,700 in January was reportedly 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 FCCPC said its survey indicated that Nigeria had installed cement production capacity of between 60 million and 65 million metric tonnes annually, compared with estimated domestic consumption of approximately 25 million to 30 million metric tonnes.
It further noted that Nigeria is a net exporter of cement to neighbouring countries.
The Commission expressed concern that the reported excess production capacity had not translated into downward pressure on domestic prices, as might ordinarily be expected in a competitive market with substantial excess capacity.
Industry participants, according to the FCCPC, identified energy costs, naira depreciation and its impact on imported machinery and spare parts, as well as transportation and logistics costs, as factors contributing to cement prices.
The Commission said it was testing those explanations against verified information on production costs, pricing and prevailing market conditions.
It added that the preliminary findings provided sufficient grounds for the investigation to continue to determine whether prevailing cement prices were justified by legitimate costs and market conditions or whether there was evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct prohibited under the Federal Competition and Consumer Protection Act (FCCPA).
As part of the next phase of the investigation, the FCCPC said it had issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry.
The companies are required to provide information and records relating to their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.
The Executive Vice Chairman/Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said the investigation was part of the Commission’s responsibility to examine market conditions with significant implications for consumers and the wider 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. 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 said.
He clarified that the investigation was not aimed at dictating the commercial decisions of businesses but at determining whether the market was functioning competitively and whether consumers were benefiting from effective competition.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that. Its 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,” he said.
The FCCPC said the investigation would continue as it examines the evidence provided by industry players and determines whether any conduct in the cement market violates Nigeria’s competition and consumer protection laws.
