Key Points
- FCCPC begins investigation after concerns over rising cement prices.
- Cement prices reportedly climbed from about N9,300-N9,700 in January to as high as N15,000 in some areas by July.
- Probe will assess pricing, production, supply and possible anti-competitive practices.
Main Story
The Federal Competition and Consumer Protection Commission (FCCPC) has launched an investigation into Nigeria’s cement market following concerns that competition-related practices may be contributing to high prices.
The commission announced the probe on Aug. 18 after its Anticompetitive Practices Department completed a three-month review prompted by complaints over the rising cost of cement.
The review included comparisons with cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. The FCCPC examined factors such as production capacity, consumption, population and limestone availability.
The commission said the findings raised questions about the relationship between Nigeria’s significant limestone resources, its installed cement production capacity and the prices paid by consumers.
It said a 50kg bag of cement sold for about N9,300-N9,700 in January but had risen to between N10,500 and N13,000 by mid-2026. In some parts of the country, prices reportedly reached N13,000-N15,000 by July.
Nigeria has more than 60 million to 65 million metric tonnes of installed annual cement production capacity, according to the FCCPC, while domestic consumption is estimated at about 25 million to 30 million tonnes.
The commission noted that Nigeria also exports cement to neighbouring countries.
Investigators will examine whether energy expenses, naira depreciation, imported machinery and spare parts, transportation and other logistics costs adequately explain the price increases.
The inquiry will also consider whether companies may have engaged in coordinated pricing, restricted supply, abused market power or adopted distribution practices that undermine competition.
The FCCPC has served major industry participants with Notices of Commencement of Investigation and Summons to Produce. The companies are expected to provide information on pricing methods, production, capacity utilisation, exports and commercial relationships.
The Issues
Cement is a major input in housing, infrastructure and commercial construction, meaning sustained price increases can raise the overall cost of building and doing business.
The FCCPC is seeking to establish whether current prices are mainly the result of legitimate cost pressures or whether market practices are limiting competition and contributing to higher prices.
What’s Being Said
FCCPC Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello, said the investigation was aimed at establishing the facts surrounding the market rather than acting on assumptions.
He described cement as strategically important because its price affects housing, commercial property, public infrastructure and business costs.
Bello stressed that the investigation was not an attempt to impose prices or prevent cement producers from making legitimate returns.
He said competition law was intended to ensure that prices and other market outcomes reflected genuine competition and were not the result of unlawful conduct.
What’s Next
Cement companies affected by the investigation will submit records requested by the FCCPC as the commission examines pricing, production, supply and distribution practices.
The findings will determine whether any conduct breached Nigeria’s competition laws.
Bottom Line
The FCCPC has opened an investigation into Nigeria’s cement industry following concerns over sharp price increases. The probe is still ongoing, and the commission has yet to establish any wrongdoing by companies operating in the sector.
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