FCCPC Probes Cement Prices Over Possible Manipulation, Anti-Competitive Practices

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 a three-month investigation into the sector.

The commission said preliminary findings from its Anticompetitive Practices Department (ACP) are contained in a 40-page field report examining Nigeria’s cement market and comparing it with markets in other African countries.

FCCPC Questions Rising Cement Prices

The investigation was launched amid concerns over the rising cost of cement, despite Nigeria’s significant limestone deposits, large domestic production capacity and reported surplus installed capacity.

According to the FCCPC, three major companies account for more than 90 per cent of Nigeria’s installed cement production capacity.

The commission said all major manufacturers cooperated with the investigation by providing requested records, except one.

As part of its assessment, the ACP compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors such as production capacity, domestic consumption, limestone availability and retail prices.

Cement Prices Rise Sharply

The FCCPC said cement prices in Nigeria increased significantly during the first half of 2026.

A 50kg bag reportedly sold for between N9,300 and N9,700 in January, but rose to between N10,500 and N13,000 by mid-year.

By July, prices of between N13,000 and N15,000 were reported in some parts of the country.

The commission estimated Nigeria’s annual installed cement production capacity at more than 60–65 million metric tonnes, compared with domestic consumption of approximately 25–30 million metric tonnes.

It also noted that Nigeria exports cement to neighbouring countries.

Regional Price Comparison

The regulator said the price disparity was particularly concerning when compared with some other African markets.

In Kenya, where domestic cement demand was estimated at 9.3 million metric tonnes in 2025, a bag reportedly sold for about $5.40, equivalent to N7,344.

In Tanzania, a similar estimated demand level was recorded, while a bag of cement sold for approximately $4.80, or N6,528.

Togo, despite having no limestone deposits, reportedly recorded a price of about $6.75, equivalent to N9,180.

The FCCPC said the gap between Nigeria’s installed capacity and domestic consumption would ordinarily be expected to create conditions for more competitive pricing.

Industry Costs Under Review

Cement industry operators have attributed some of the price increases to rising energy costs, naira depreciation, higher costs of imported machinery and spare parts, as well as transportation and logistics expenses.

However, the FCCPC said it was testing these explanations against verified information on production costs, pricing, capacity utilisation and broader market conditions.

The commission said the preliminary findings provide sufficient grounds for the investigation to continue.

The next phase will determine whether current cement prices are justified by legitimate production costs or whether there is evidence of coordinated pricing, abuse of market power, restrictions on domestic supply or anti-competitive distribution practices.

FCCPC Summons Industry Players

The commission has issued notices of commencement of investigation and summonses to key industry players.

The companies have been directed to provide information covering pricing methods, production levels, capacity utilisation, exports and relevant commercial relationships.

FCCPC Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because cement plays a major role in the Nigerian economy.

He noted that cement prices directly affect the cost of housing, commercial development, public infrastructure and doing business.

Bello stressed that the investigation was not intended to dictate how companies conduct legitimate business or prevent them from making profits.

Instead, he said the commission’s objective was to determine whether the market was operating competitively and whether prices and supply were being influenced by lawful market forces rather than practices that violate Nigeria’s competition laws.