The Federal Competition and Consumer Protection Commission (FCCPC) says preliminary findings from its investigation into Nigeria’s cement industry have raised concerns over possible price manipulation and other anti-competitive practices.
The findings are contained in a 40-page field report produced by the commission’s Anticompetitive Practices Department (ACP) following a three-month cross-border assessment of cement markets.
According to a statement issued on Tuesday by the FCCPC director of corporate affairs, Ondaje Ijagwu, the investigation was launched in response to widespread concerns over the rising price of cement, a key input in Nigeria’s construction sector.
The commission said particular attention was drawn to the relatively high retail price of cement in Nigeria despite the country’s large limestone deposits, substantial domestic production capacity and reported excess installed capacity.
“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,” the statement reads.
“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.”
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As part of the exercise, the ACP examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, comparing factors including limestone availability, population, production capacity and domestic consumption.
In Kenya, with a population of about 58.6 million, which the FCCPC said is 76 per cent lower than Nigeria’s, domestic cement demand was estimated at 9.3 million metric tonnes per annum (MTPA) in 2025.
The commission put the retail price of a bag of cement in Nairobi at $5.40, equivalent to N7,344, noting that Kenya also has significant limestone deposits.
Tanzania, with a population of approximately 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.
The commission said a bag of cement sells for $6.75, or N9,180, in Togo, a country it noted does not have limestone deposits.
By comparison, the FCCPC said prices in Nigeria increased sharply during the first half of 2026.
“A bag reportedly selling for between N9,300 and N9,700 in January was selling for 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 regulator estimated Nigeria’s installed cement production capacity at more than 60 million to 65 million metric tonnes annually, against domestic consumption of approximately 25 million to 30 million metric tonnes.
It added that Nigeria is a net exporter of cement to neighbouring countries.
According to the commission, the significant gap between installed production capacity and domestic consumption was particularly concerning because the excess capacity had not resulted in lower prices, as would ordinarily be expected in a competitive market.
Industry participants, the FCCPC said, had attributed cement prices partly to energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.
“The commission is testing these explanations against verified information on costs, production, pricing and market conditions.
“However, the weight of preliminary findings provides sufficient grounds for the investigation to continue.”
The next phase of the probe, according to the regulator, will establish whether prevailing 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 had issued notices of commencement of investigation and summonses to key industry players, directing them to provide 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 was part of the commission’s mandate to examine market conditions with significant implications for consumers and the broader 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,” he said.
“When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts.”
Bello stressed that the investigation was not aimed at controlling the commercial decisions of businesses but at determining whether the cement market was operating competitively and delivering benefits to consumers.
“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. That distinction is important to the work we are undertaking,” he said.
