The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a formal investigation into possible manipulation of cement prices in Nigeria following a sharp increase in the cost of the building material despite the country’s substantial production capacity.
The Commission said preliminary findings from a three-month, industry-wide investigation suggest that market conditions alone may not fully explain the persistent rise in cement prices across the country. (Voice of Nigeria)
According to the FCCPC, the price of a 50kg bag of cement increased from between ₦9,300 and ₦9,700 in January 2026 to between ₦10,500 and ₦13,000 by mid-year. By July, prices of between ₦13,000 and ₦15,000 were reported in some parts of Nigeria. (The Guardian Nigeria)
The development has raised concerns among consumers, builders and other stakeholders, particularly because Nigeria has significant limestone deposits and an estimated installed cement production capacity of between 60 million and 65 million metric tonnes annually, compared with domestic consumption estimated at about 25 million to 30 million tonnes.
The country is also a net exporter of cement to neighbouring countries.
The FCCPC said the level of excess capacity would ordinarily be expected to encourage competition and exert downward pressure on prices. Instead, prices have continued to rise, prompting the Commission to examine whether anti-competitive practices may be contributing to the situation. (Arbiterz)
FCCPC Opens Probe Into Cement Industry
The Commission’s Anticompetitive Practices Department conducted the investigation following complaints over the comparatively high retail price of cement in Nigeria.
The preliminary findings are contained in a 40-page field report, according to reports on the Commission’s investigation.
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry, requiring them to provide information relating to pricing, production, capacity utilisation, exports and commercial relationships. (Legit.ng – Nigeria news.)
The investigation is expected to examine possible coordinated pricing, abuse of market power, restrictions on supply and anti-competitive distribution practices.
The Commission has, however, not concluded that cement manufacturers are guilty of price manipulation. Its findings at this stage point to possible anti-competitive conduct that is now subject to further investigation.
Nigeria’s Cement Prices Compared With Other African Markets
As part of its assessment, the FCCPC compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The comparison showed significant differences in retail prices.
In Kenya, a 50kg bag was reported at about $5.40, equivalent to approximately ₦7,344, while Tanzania recorded about $4.80, or approximately ₦6,528.
Even Togo, which the Commission noted does not have limestone deposits, recorded a price of about $6.75, equivalent to approximately ₦9,180 per 50kg bag. (The Guardian Nigeria)
The comparison has intensified questions over why cement remains considerably more expensive in Nigeria despite its large production base and access to local raw materials.
Manufacturers Cite Rising Production Costs
Cement producers have previously attributed price increases to factors including higher energy costs, naira depreciation, increased logistics expenses and the rising cost of imported machinery, spare parts and other inputs.
The FCCPC said it is examining these explanations against actual production costs, capacity utilisation and other market data as part of the ongoing investigation. (Legit.ng – Nigeria news.)
The latest investigation is not the first time the FCCPC has raised concerns about pricing practices in Nigeria’s cement market.
In 2024, the Commission cited an example involving BUA Cement, saying its chairman, Abdul Samad Rabiu, had disclosed that the company’s efforts to sell cement at ₦3,500 per bag were undermined by dealers who allegedly resold the product for as much as ₦7,000 to ₦8,000.
The FCCPC stressed at the time that its mandate was not to control prices but to tackle exploitative and anti-competitive practices. (FCCPC)
Impact on Construction and Housing
The latest surge in cement prices is likely to further increase construction costs at a time when Nigerians are already facing high housing and building expenses.
Cement is a major component of residential construction, commercial real estate and public infrastructure projects, meaning sustained price increases can have wider implications for housing affordability and development.
With the FCCPC investigation now underway, the Commission is expected to determine whether the current prices are primarily the result of legitimate market forces and production costs or whether anti-competitive practices are contributing to the price shock.
The outcome could determine whether enforcement action is taken against companies or other players found to have violated Nigeria’s competition and consumer protection laws. (Voice of Nigeria)