The Federal Competition and Consumer Protection Commission (FCCPC) has launched a fresh investigation into Nigeria’s cement industry over possible price manipulation, following a three-month study that raised questions about the continued rise in cement prices despite the country’s substantial production capacity and abundant limestone deposits.
The commission said its preliminary findings suggested that prevailing cement prices could not be fully explained by normal market conditions, prompting further investigation into possible anti-competitive practices in the sector.
The findings followed a cross-border study conducted by the FCCPC’s Anticompetitive Practices Department in response to widespread complaints about the high cost of cement.
In a statement issued on Tuesday by the commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said the study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The study examined factors including limestone availability, population, production capacity, domestic consumption and retail prices.
“Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market,” the commission said.
It described the findings as a preliminary summation of 40-page field reports compiled from the three-month cross-border study.
According to the FCCPC, Nigeria has substantial limestone deposits and an installed cement production capacity estimated at 60-65 million metric tonnes annually, compared with domestic consumption of about 25-30 million metric tonnes.
Despite the reported excess capacity and Nigeria’s position as a net exporter of cement to neighbouring countries, the commission said domestic prices had continued to climb.
Market intelligence gathered by the FCCPC showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, increased to between N10,500 and N13,000 by mid-year.
By July, prices had risen further to between N13,000 and N15,000 in some parts of the country.
The commission said the price trend was difficult to reconcile with Nigeria’s significant production capacity and raw material advantage.
The FCCPC also compared cement prices in Nigeria with those in other African markets, finding that the product was sold at lower prices in some countries with smaller populations and lower production capacities.
In Kenya, with a population of about 58.6 million and cement demand estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344.
In Tanzania, where the population is approximately 66.3 million and cement demand was similarly estimated at 9.3 million metric tonnes, the product sold for about $4.80, equivalent to N6,528.
In Togo, where the FCCPC said there were no limestone deposits, a 50kg bag of cement retailed at about $6.75, or N9,180.
The commission said the price disparity raised questions about why Nigeria’s larger production capacity and access to raw materials had not translated into lower domestic prices.
The commission said industry operators had attributed the high cost of cement to factors including energy expenses, naira depreciation, imported machinery and spare parts, transportation and logistics costs.
However, the FCCPC said it was testing those explanations against verified information on production costs, capacity utilisation, pricing and other market conditions.
“Of particular concern to the Commission is 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 said.
The commission stressed that the preliminary findings were sufficient to justify the continuation of the investigation.
The probe will determine whether the current cement prices are driven by legitimate costs and market conditions or by possible anti-competitive practices.
The FCCPC said it would examine possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
As part of the investigation, the commission has issued Notices of Commencement of Investigation and Summons to Produce to key players in the industry, requiring them to provide records on pricing methodologies, production, capacity utilisation, exports and commercial relationships.
The FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because of the strategic role of cement in the Nigerian economy.
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“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 dictate how companies operate or prevent businesses from making legitimate profits.
“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 investigation comes amid mounting concerns over rising construction costs, with expensive cement increasingly affecting housing development and infrastructure projects across the country.
