FCCPC Probes Price Manipulation In Nigeria As Cement Hits N15,000

…Sells For N7,344 In Kenya, Tanzania N6,528, Togo N9,180

The Federal Competition and Consumer Protection Commission has commenced an investigation into possible manipulation of cement prices in Nigeria following a significant increase in the retail price of the building material.

The Commission said preliminary findings from an industry-wide investigation suggested possible anti-competitive practices in the cement market, prompting it to deepen its probe into the factors responsible for the persistent high prices.

The findings were contained in a 40-page field report compiled by the Commission’s Anticompetitive Practices Department after a three-month cross-border study conducted in response to widespread complaints over the cost of cement.

According to the FCCPC, the retail price of a 50kg bag of cement rose from between N9,300 and N9,700 in January 2026 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 development has raised concerns given Nigeria’s substantial limestone deposits, significant domestic production capacity and reported excess capacity relative to domestic consumption.

The Commission said Nigeria has installed cement production capacity of more than 60 million to 65 million metric tonnes annually, while estimated domestic consumption stands at approximately 25 million to 30 million metric tonnes.

Nigeria is also a net exporter of cement to neighbouring countries.

The FCCPC said the level of installed capacity would ordinarily be expected to exert downward pressure on prices in a competitive market, particularly where there is substantial excess capacity.

“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,” it said.

The investigation covered Nigeria and selected markets in Sub-Saharan Africa, including Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria.

The Commission compared factors including limestone availability, population, production capacity, consumption and prevailing cement prices across the markets.

In Kenya, which has a population of 58.6 million, about 76 per cent lower than Nigeria’s, domestic cement demand was approximately 9.3 million metric tonnes in 2025, while a 50kg bag sold for about $5.40, equivalent to N7,344.

In Tanzania, with a population of 66.3 million and domestic cement demand of about 9.3 million metric tonnes in 2025, a bag sold for about $4.80, or N6,528.

The Commission noted that Togo, despite having no limestone deposits, recorded a retail price of about $6.75, equivalent to N9,180, per bag.

The FCCPC said industry participants had identified energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs, among factors contributing to cement prices.

However, the Commission said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.

It said the preliminary findings provided sufficient grounds for the investigation to continue.

The next phase, according to the Commission, is to determine whether prevailing cement prices can be explained by legitimate costs and market conditions or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct prohibited under the Federal Competition and Consumer Protection Act.

Consequently, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector.

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

The FCCPC said all major cement manufacturers cooperated with the investigation by making their records available, except one.

Publicly available estimates indicate that three major undertakings account for more than 90 per cent of installed cement production capacity in Nigeria.

Explaining the rationale for the investigation, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said cement was critical to the Nigerian economy and its price had significant implications for consumers and businesses.

“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 dictating the commercial decisions of businesses but at determining whether the market was operating competitively.

According to him, businesses are entitled to make legitimate commercial decisions and earn returns on their investments, but competition law is designed to ensure that market outcomes are not driven by unlawful conduct.

The FCCPC said the investigation would establish whether the current pricing structure in the cement industry was the result of legitimate market forces or practices capable of undermining competition and harming consumers.