The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over possible price manipulation and other anti-competitive practices in Nigeria’s cement industry following preliminary findings from its ongoing investigation into the sector.
The findings are contained in a 40-page field report prepared by the Commission’s Anticompetitive Practices Department (ACP) after a three-month cross-border assessment of cement markets.
In a statement issued on Tuesday by FCCPC Director of Corporate Affairs, Ondaje Ijagwu, the Commission said the investigation was prompted by widespread concerns over the rising cost of cement, a critical input in Nigeria’s construction sector.
The regulator said it was particularly concerned about the relatively high retail price of cement in Nigeria despite the country’s abundant limestone deposits, significant domestic production capacity and reported surplus installed capacity.
The Commission noted that publicly available estimates indicate that three major cement manufacturers control more than 90 per cent of the country’s installed production capacity.
It added that all major cement manufacturers cooperated with the investigation by providing access to their records, with the exception of one company.
Cross-Border Price Assessment
As part of the investigation, the ACP assessed cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, comparing factors such as 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 (MTPA) in 2025. The FCCPC said a 50kg bag of cement sold for about $5.40 in Nairobi, equivalent to approximately N7,344.
Tanzania, with a population of about 66.3 million, recorded a similar estimated domestic demand of 9.3 million MTPA in 2025, while a bag of cement sold for about $4.80, or N6,528.
In Togo, where the Commission said there are no limestone deposits, a bag of cement reportedly sold for about $6.75, equivalent to N9,180.
By contrast, cement prices 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 reached between N13,000 and N15,000 in some parts of the country by July.
Excess Capacity Raises Concerns
The FCCPC estimated Nigeria’s installed cement production capacity at between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million metric tonnes.
The Commission also noted that Nigeria is a net exporter of cement to neighbouring countries.
According to the regulator, the significant gap between installed capacity and domestic consumption is concerning because the excess capacity has not translated into lower prices, as would ordinarily be expected in a competitive market.
Industry participants have attributed the high prices partly to rising energy costs, the depreciation of the naira and its effect on imported machinery and spare parts, as well as transportation and logistics expenses.
The FCCPC said it is testing these explanations against verified data on production costs, pricing, capacity and broader market conditions.
However, it said the preliminary findings provide sufficient grounds for the investigation to continue.
Probe To Examine Possible Anti-Competitive Conduct
The next phase of the investigation will determine whether current cement prices are justified by legitimate production costs and prevailing market conditions or whether there is evidence of coordinated conduct, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices or other violations of the Federal Competition and Consumer Protection Act (FCCPA).
The FCCPC said it has issued notices of commencement of investigation and summonses to key industry players, requiring them to submit information and records covering pricing methodologies, production, capacity utilisation, exports and relevant commercial relationships.
FCCPC Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the investigation falls within the Commission’s mandate to examine market conditions that have 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,” Bello said.
He stressed that the investigation was not intended to control the legitimate commercial decisions of businesses, but to determine whether the cement market was operating competitively and delivering benefits to consumers.
According to Bello, businesses have the right to make legitimate commercial decisions and earn returns on their investments. However, competition law is designed to protect the competitive process and ensure that prices, output and other market outcomes are driven by genuine competition rather than unlawful conduct that restricts it.
