Key Points
- FCCPC says preliminary findings indicate possible price manipulation in Nigeria’s cement market.
- A three-month industry and cross-border investigation compared Nigeria with markets including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.
- Cement prices reportedly rose from N9,300–N9,700 per 50kg bag in January to N13,000–N15,000 in some areas by July 2026.
- Nigeria has an estimated 60–65 million tonnes or more of installed annual cement capacity, against domestic consumption of about 25–30 million tonnes.
- More than 90 per cent of installed production capacity is reportedly controlled by three major manufacturers.
Main Story
The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered preliminary evidence suggesting possible manipulation of cement prices in Nigeria, raising fresh questions about competition and pricing practices in one of the country’s most important building-material markets.
The Commission disclosed the findings on Tuesday following a three-month investigation by its Anticompetitive Practices Department (ACP), launched in response to widespread complaints over the rising cost of cement.
The investigation examined Nigeria’s cement market alongside selected markets across Africa, including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, with the Commission assessing factors such as limestone availability, population, production capacity, domestic consumption and retail prices.
The findings are significant because Nigeria possesses abundant limestone deposits and substantial domestic cement manufacturing capacity. Yet, despite what the FCCPC describes as significant excess installed capacity, the price of cement has continued to rise.
Cement prices jump despite surplus capacity
According to market intelligence reviewed by the Commission, a 50kg bag of cement that sold for between N9,300 and N9,700 in January 2026 had risen to between N10,500 and N13,000 by mid-year.
By July, prices of between N13,000 and N15,000 were being reported in some parts of the country.
The price increases have significant implications for Nigeria’s construction sector, where cement is a basic input for housing, roads, commercial buildings and other infrastructure projects.
The FCCPC’s concern is not simply that cement prices are high, but that the prices appear difficult to reconcile with the level of production capacity available in the country.
The Commission estimates Nigeria’s installed cement production capacity at more than 60–65 million metric tonnes per annum, while domestic consumption is estimated at only about 25–30 million tonnes.
In theory, such a gap between production capacity and domestic demand should create stronger competition among manufacturers and exert downward pressure on prices.
Instead, the opposite appears to have occurred.
What the Commission found
The FCCPC said its preliminary findings raise questions about whether market forces alone are responsible for the current pricing structure.
The investigation found that three major cement manufacturers account for more than 90 per cent of installed production capacity, according to publicly available estimates.
The high concentration of the market has therefore become a major area of interest for investigators as they examine whether dominant players are exercising market power in ways that may restrict competition.
The Commission, however, has not concluded that any company has committed an offence.
Rather, it said the preliminary findings provide sufficient grounds for the investigation to continue.
How Nigeria compares with other markets
The cross-border comparison offers another dimension to the investigation.
In Kenya, which has a population of about 58.6 million, domestic cement demand was approximately 9.3 million tonnes in 2025, while a 50kg bag reportedly sold for about $5.40, equivalent to approximately N7,344 based on the Commission’s conversion.
Kenya also has significant limestone deposits.
In Tanzania, with a population of about 66.3 million and domestic cement demand of approximately 9.3 million tonnes in 2025, a bag sold for about $4.80, or N6,528.
Togo presents a different comparison. A 50kg bag reportedly sells for about $6.75, or N9,180, despite the country not having significant limestone deposits.
The comparisons are being used by the FCCPC to test whether Nigeria’s prices are reasonably explained by its underlying production environment.
Manufacturers point to rising costs
Industry participants have provided several explanations for the increase in cement prices.
These include higher energy costs, the depreciation of the naira, increased costs of imported machinery and spare parts, transportation expenses and broader logistics costs.
The FCCPC said it is testing those explanations against verified information on actual production costs, pricing structures, output and market conditions.
This distinction is important.
Higher prices do not automatically constitute price manipulation. Cement manufacturers may legitimately increase prices when production, energy, financing, logistics or imported input costs rise.
The investigation therefore seeks to determine whether the increases are proportionate to legitimate costs or whether other market practices are contributing to the prices consumers are paying.
The big question: competition or market power?
At the heart of the investigation is whether Nigeria’s cement market is functioning competitively.
The Commission is examining several possibilities, including coordinated conduct among market participants, abuse of dominant market positions, deliberate restriction of domestic supply, anti-competitive distribution practices and other conduct prohibited under the Federal Competition and Consumer Protection Act (FCCPA).
The investigation could therefore have implications beyond the price of a bag of cement.
If the Commission ultimately establishes anti-competitive practices, the findings could trigger regulatory action against companies or practices found to have harmed consumers or restricted competition.
Industry cooperation
The FCCPC said all major cement manufacturers cooperated with the investigation by making their records available except one.
The records are expected to provide investigators with information needed to determine how production costs translate into wholesale and retail prices.
Such information could help the Commission establish whether the price increases are driven primarily by higher costs or whether there are discrepancies between production economics and market pricing.
The Issues
The investigation comes at a time when high construction costs are already placing pressure on housing affordability and infrastructure development.
Cement is a major component of building costs, meaning sustained increases can feed directly into the cost of homes and other construction projects.
For contractors and developers, higher cement prices can increase project costs and delay construction. For households, particularly those building incrementally, price increases can make homeownership even more difficult.
The market concentration also presents a competition concern. Where a small number of companies control a very large share of production capacity, the FCCPC must determine whether competition remains sufficiently strong to protect consumers.
At the same time, the Commission must distinguish between legitimate price increases caused by higher production costs and unlawful anti-competitive behaviour.
What’s Being Said
The FCCPC’s preliminary position is that the evidence does not yet amount to a final finding of wrongdoing.
The Commission said the investigation must now 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 contrary to the provisions of the FCCPA.”
The Commission said the weight of the preliminary findings provides sufficient grounds for the investigation to continue.
What’s Next
The FCCPC has now issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry.
The next phase will involve deeper examination of company records, production costs, supply volumes, pricing structures, distribution arrangements and other relevant market information.
Investigators will also test claims relating to energy, logistics, exchange-rate movements and imported equipment costs against documentary evidence.
The Commission’s eventual findings could determine whether the current price levels are primarily a consequence of legitimate market conditions or whether regulatory intervention is required.
Bottom Line
The FCCPC’s investigation puts Nigeria’s cement industry under intense scrutiny at a time when a 50kg bag has climbed to as much as N15,000 in some markets, despite the country having installed production capacity significantly above estimated domestic consumption.
The central question is no longer simply why cement is expensive, but whether the price Nigerians are paying accurately reflects the cost of producing and distributing cement—or whether weaknesses in market competition are allowing prices to remain unnecessarily high.
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