The Federal Competition and Consumer Protection Commission (FCCPC) has commenced further investigations into Nigeria’s cement industry amid concerns that rising prices may not be fully explained by production and operating costs.
The Commission’s preliminary findings point to possible price manipulation in the sector, coming at a time when Nigeria has significantly more cement production capacity than its estimated domestic requirement.
The findings emerged from a three-month cross-border inquiry conducted by the FCCPC’s Anticompetitive Practices Department (ACP) following complaints about the sharp increase in cement prices. The outcome of the exercise was documented in a 40-page field report.
According to the Commission, Nigeria currently has an estimated installed cement production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is put at roughly 25 million to 30 million tonnes.
The country is also a net exporter of cement to neighbouring markets, further raising questions about the continued increase in local prices despite the apparent surplus in production capacity.
The price of a 50kg bag of cement, which stood between N9,300 and N9,700 in January 2026, climbed to between N10,500 and N13,000 by mid-year. In July, prices in some locations reached as high as N15,000 per bag.
The FCCPC said such increases warranted closer scrutiny because significant excess capacity would ordinarily be expected to encourage competition and put downward pressure on prices.
As part of its assessment, the Commission compared Nigeria with cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The comparison considered variables such as population, limestone availability, production capacity, domestic demand and retail prices.
In Kenya, where the population is estimated at 58.6 million and cement demand was about 9.3 million tonnes in 2025, a 50kg bag reportedly sold for approximately $5.40, equivalent to N7,344.
Tanzania, with a population of about 66.3 million and a comparable level of cement demand, recorded an average price of about $4.80, or N6,528 per bag.
The Commission also pointed to Togo, which it said has no limestone deposits, where a 50kg bag was priced at about $6.75, equivalent to N9,180.
The figures have prompted the FCCPC to examine whether the cost pressures cited by Nigerian cement manufacturers are sufficient to explain the difference in prices.
Manufacturers and other industry stakeholders have linked the rising cost of cement to several factors, including high energy expenses, naira depreciation, increased costs of imported machinery and spare parts, as well as transportation and logistics.
The FCCPC said it would test those claims against verified data covering production expenses, capacity utilisation, pricing structures and broader market conditions.
The Commission said the initial findings justified extending the investigation, with the next stage focused on determining whether current cement prices are consistent with legitimate costs and normal competitive market behaviour.
Investigators will also look into possible coordination between companies, abuse of market dominance, restrictions on domestic supply, anti-competitive distribution arrangements and other practices that may violate Nigeria’s competition laws.
As part of the process, the FCCPC has served key industry players with Notices of Commencement of Investigation and Summons to Produce.
The affected companies are expected to submit information on their pricing policies, production volumes, capacity utilisation, export activities and relevant commercial relationships.
The inquiry comes against the backdrop of the highly concentrated nature of Nigeria’s cement industry. Publicly available estimates suggest that three major producers control more than 90 per cent of the country’s installed production capacity.
However, the Commission said its investigation should not be viewed as an attempt to control the commercial decisions of cement manufacturers.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said businesses remained free to make legitimate commercial decisions and seek reasonable returns on their investments.
