FCCPC Probes Cement Price Manipulation as Nigeria’s Cement Prices Hit ₦15,000

The Federal Competition and Consumer Protection Commission (FCCPC) has launched a major investigation into Nigeria’s cement industry following preliminary findings suggesting possible manipulation of cement prices in the domestic market.

The Commission disclosed that its Anticompetitive Practices Department (ACP) conducted a three-month, cross-border investigation in response to widespread complaints over the rising cost of cement, a key input in Nigeria’s construction sector.

According to the FCCPC, the preliminary findings were contained in a 40-page field report compiled after investigations across Nigeria and selected cement markets in Africa.

The Commission said concerns were heightened by the comparatively high price of cement in Nigeria despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity.

Cement prices rise sharply in Nigeria

Market intelligence reviewed by the FCCPC showed that the price of a 50kg bag of cement increased significantly during the first half of 2026.

According to the Commission, cement that sold for between ₦9,300 and ₦9,700 in January 2026 was retailing for between ₦10,500 and ₦13,000 by mid-year.

By July, prices ranging from ₦13,000 to ₦15,000 per bag were reported in some parts of the country.

The FCCPC said the sharp increase required further investigation, particularly because Nigeria reportedly has an installed cement production capacity of more than 60 to 65 million metric tonnes annually, compared with estimated domestic consumption of about 25 to 30 million metric tonnes.

The country is also reportedly a net exporter of cement to neighbouring markets.

Nigeria compared with Kenya, Tanzania, Togo

As part of its investigation, the FCCPC examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

The Commission said it considered factors including limestone availability, population, production capacity and domestic consumption.

In Kenya, which has a population of about 58.6 million, domestic cement demand was estimated at 9.3 million metric tonnes per annum in 2025. A 50kg bag of cement reportedly sold for about $5.40 (₦7,344) in Nairobi.

Tanzania, with a population of approximately 66.3 million and similar estimated cement demand of 9.3 million metric tonnes in 2025, recorded a retail price of about $4.80 (₦6,528) per bag.

In Togo, where the country does not have limestone deposits, a bag of cement reportedly sold for approximately $6.75 (₦9,180).

The comparisons have raised questions about why cement prices in Nigeria remain comparatively high despite the country’s access to limestone and substantial production capacity.

Manufacturers provide explanations

The FCCPC said all major cement manufacturers in Nigeria cooperated with the investigation by making their records available, except one.

Publicly available estimates indicate that three major companies account for more than 90 per cent of installed cement production capacity in Nigeria.

Information supplied by industry participants identified several factors that they said contribute to the cost of cement, including energy expenses, depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs.

However, the FCCPC said it was testing those explanations against verified information on production costs, pricing and prevailing market conditions.

FCCPC probes possible anti-competitive conduct

The Commission said the high prices were particularly concerning because the country’s substantial excess production capacity would ordinarily be expected to exert downward pressure on prices in a competitive market.

It said the ongoing investigation would determine whether prevailing cement prices could be justified by legitimate costs and market conditions or whether there was evidence of anti-competitive practices.

Areas being examined include possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices, among other conduct potentially prohibited under the Federal Competition and Consumer Protection Act.

The FCCPC has consequently issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector.

The Commission stressed that its findings at this stage were preliminary and that the investigation would continue to establish whether the factors responsible for the current cement prices were legitimate market conditions or evidence of conduct contrary to competition law.