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The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a fresh investigation into the cement industry over indications of possible price manipulation and other anti-competitive practices.
The Commission said its preliminary findings followed a three-month, cross-border investigation by its Anticompetitive Practices Department (ACP), launched in response to widespread complaints over the rising cost of cement in Nigeria.
The 40-page field reports examined cement markets in Nigeria and other African countries, including Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The investigation focused on factors including limestone availability, population, production capacity, domestic consumption and retail prices.
The FCCPC said concerns over cement pricing were heightened by Nigeria’s substantial limestone deposits, large domestic production capacity and reported excess capacity compared with local demand.
According to the Commission, Nigeria has installed cement production capacity of more than 60 million to 65 million metric tonnes per annum, while domestic consumption is estimated at between 25 million and 30 million tonnes.
It added that Nigeria is also a net exporter of cement to neighbouring countries.
Despite the significant production capacity, however, the Commission said cement prices had continued to rise rather than fall as might ordinarily be expected in a competitive market with excess capacity.
Market intelligence reviewed by the FCCPC showed that the price of a 50kg bag of cement increased sharply in the first half of 2026.
A bag that sold for between N9,300 and N9,700 in January reportedly rose to between N10,500 and N13,000 by mid-year, while prices of between N13,000 and N15,000 were reported in some parts of the country by July.
The Commission compared Nigeria’s prices with those in other African markets.
In Kenya, where the population is about 58.6 million and annual cement demand stood at approximately 9.3 million tonnes in 2025, a bag of cement sold for about $5.40, equivalent to N7,344 based on the Commission’s conversion.
In Tanzania, with a population of 66.3 million and similar annual cement demand of about 9.3 million tonnes, a bag sold for approximately $4.80, or N6,528.
In Togo, where the country does not have significant limestone deposits, a bag sold for about $6.75, equivalent to N9,180.
The FCCPC said industry participants had attributed the high cost of cement to factors including energy expenses, naira depreciation and its impact on imported machinery and spare parts, as well as transportation and logistics costs.
However, the Commission said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and market conditions.
It said the preliminary findings were sufficient to warrant continuation of the investigation to determine whether prevailing cement prices could be justified by legitimate costs or whether there was evidence of coordinated conduct, abuse of market power, restriction of domestic supply or anti-competitive distribution practices.
The Commission noted that all major cement manufacturers made their records available to investigators except one.
Publicly available estimates indicate that three major companies account for more than 90 per cent of Nigeria’s installed cement production capacity.
The FCCPC has consequently issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector.
The companies are required to submit information and records relating to their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary because of the importance of cement to the economy and its impact on consumers.
“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 said the Commission’s intervention was not aimed at controlling the commercial decisions of businesses but at determining whether the market was operating competitively.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that,” he said.
Bello added that the Commission’s responsibility was to ensure that prices, output and other market outcomes were determined by genuine competition rather than unlawful conduct that restricts competition.
He said the FCCPC would continue to examine the available evidence before reaching a final conclusion on the conduct of companies operating in the cement industry.
