The Federal Competition and Consumer Protection Commission (FCCPC) has alerted the public to possible manipulation of cement prices in the Nigerian market.
The FCCPC revealed that findings from an industry-wide investigation suggest possible manipulation of cement prices, noting that the findings are contained in a preliminary summation of 40-page field reports compiled after a three-month cross-border study by its Anticompetitive Practices Department (ACP), undertaken in response to widespread public complaints over the high cost of cement.
According to the Commission, 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.
“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,” the FCCPC said in a statement on Tuesday.
It disclosed that the ACP’s investigations extended to markets in Sub-Saharan Africa, such as Kenya, Tanzania and South Africa, as well as Egypt, Morocco, and Algeria.
The metrics adopted included the availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption.
Referencing Kenya, the Commission stated that the country, with a population of 58.6 million, 76 percent lower than Nigeria’s, has domestic cement demand of approximately 9.3 million metric tonnes per annum (MTPA) in 2025. It noted that the retail price in Nairobi is $5.40 (₦7,344), adding that Kenya is endowed with limestone.
The FCCPC also identified Tanzania, with a population of 66.3 million, 72 percent lower than Nigeria’s, saying its domestic cement demand was 9.3 million MTPA in 2025 and that a bag of cement sells for $4.80 (₦6,528).
With reference to Togo, the Commission said that a bag of cement sells for $6.75 (₦9,180), stressing that the country does not have limestone deposits.
However, the FCCPC pointed out that, in Nigeria, market intelligence it reviewed showed that the retail price of a 50kg bag of cement rose significantly during the first half of 2026.
“A bag reportedly selling for between ₦9,300 and ₦9,700 in January was selling for between ₦10,500 and ₦13,000 by mid-year. By July, prices of between ₦13,000 and ₦15,000 were reported in some parts of the country.”
The Commission argued that its survey indicated that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption is approximately 25 to 30 million metric tonnes.
It emphasised that Nigeria is also a net exporter of cement to neighbouring markets, expressing concern 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 statement affirmed that information provided by industry participants 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 Commission confirmed that it is testing these explanations against verified information on costs, production, pricing and market conditions.
The FCCPC further clarified that the preliminary findings provide sufficient grounds for the investigation to continue.
It added that the next step is to 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 FCCPA.
