The Federal Competition and Consumer Protection Commission, FCCPC, has launched an investigation into cement manufacturers over concerns about the high retail price of the product in Nigeria.
The commission said the probe followed an industry-wide investigation that indicated possible manipulation of cement prices, amid widespread complaints from consumers about the rising cost of the building material.
According to the FCCPC, a three-month cross-border study conducted by its Anti-competitive Practices Department, ACP, provided sufficient grounds for further investigation.
The commission has consequently issued Notices of Commencement of Investigation and Summons to key players in the cement industry, requiring them to submit information and records on their pricing methods, production levels, capacity utilisation, exports and relevant commercial relationships.
Three companies account for more than 90 per cent of cement production in Nigeria: Dangote Cement Plc, HMB Nigeria Plc, formerly Lafarge Africa Plc, and BUA Cement Plc.
The FCCPC said its investigation was prompted by concerns over Nigeria’s relatively high cement prices compared with other markets, despite the country’s large limestone deposits, substantial domestic production capacity and reported surplus installed capacity.
The commission said it compared Nigeria with cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and other sub-Saharan African countries.
The study considered factors including limestone availability, population, production capacity and domestic consumption.
According to the FCCPC, Nigeria has an installed cement production capacity of more than 60 to 65 million metric tonnes annually, while domestic consumption is estimated at between 25 and 30 million metric tonnes.
The commission also noted that Nigeria is a net exporter of cement to neighbouring countries.
It expressed concern that the country’s substantial excess production capacity had not translated into lower domestic prices as would normally be expected in a competitive market.
Cement Prices Across Selected African Markets
The FCCPC’s comparison showed that a 50kg bag of cement sells for approximately N7,344 in Kenya, N6,528 in Tanzania and N9,180 in Togo, compared with as much as N15,000 in Nigeria.
Kenya, with a population of 58.6 million, recorded domestic cement demand of about 9.3 million metric tonnes per annum, MTPA, in 2025.
Tanzania, with a population of 66.3 million, also recorded cement demand of about 9.3 million MTPA in 2025.
The commission noted that Togo does not have significant limestone deposits, yet cement prices there remain below Nigeria’s current retail levels.
In Nigeria, the FCCPC said the price of a 50kg bag of cement increased significantly during the first half of 2026.
A bag that sold for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year. By July, prices had reached between N13,000 and N15,000 in some parts of the country.
FCCPC Examines Manufacturers’ Cost Claims
The commission said industry participants had identified energy expenses, naira depreciation and its impact on imported machinery and spare parts, as well as transportation and logistics costs, as factors responsible for the price increases.
However, the FCCPC said it was verifying these explanations against information on production costs, pricing, output and prevailing market conditions.
Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said the investigation was part of the commission’s responsibility to examine markets with significant implications for consumers and the wider economy.
Bello noted that cement is critical to housing construction, commercial development, public infrastructure and the overall cost of doing business.
He stressed that the investigation was not intended to dictate the commercial decisions of businesses but to determine whether the market was operating competitively and whether consumers were benefiting from genuine competition.
The FCCPC said businesses have the right to make legitimate commercial decisions and earn returns on their investments, adding that competition law does not prevent this.
However, it said the law seeks to protect the competitive process and prevent prices, supply and other market outcomes from being influenced by unlawful anti-competitive conduct.
The commission said the next stage of the investigation would determine whether current cement prices can be justified by legitimate costs and 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.
