Competition Scrutiny: FCCPC Investigates Cement Price Manipulation in Nigeria
The Federal Competition and Consumer Protection Commission (FCCPC) says preliminary findings from an industry-wide investigation suggest possible manipulation of cement prices in the Nigerian market.
The Commission said the findings were contained in 40-page field reports compiled after a three-month cross-border study by its Anticompetitive Practices Department (ACP), following widespread complaints over the high cost of cement.
The investigation compared Nigeria’s cement market with markets across Sub-Saharan Africa, including Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria.
The Commission said concerns were heightened by Nigeria’s substantial limestone deposits, significant domestic production capacity and reported excess installed capacity compared with domestic consumption.
According to the FCCPC, all major cement manufacturers in Nigeria cooperated with the investigation by providing access to their records, except one company.
Publicly available estimates indicate that three major companies account for more than 90 per cent of the country’s installed cement production capacity.
The Commission said its investigators considered several factors, including the availability of limestone, population, production capacity and cement consumption.
In Kenya, which has a population of about 58.6 million, 76 per cent lower than Nigeria’s, domestic cement demand stood at approximately 9.3 million metric tonnes per annum in 2025.
The FCCPC said a 50kg bag of cement retailed for about $5.40, equivalent to N7,344, in Nairobi, despite Kenya having significant limestone deposits.
In Tanzania, with a population of about 66.3 million and 2025 domestic cement demand of approximately 9.3 million metric tonnes, a bag sold for about $4.80, or N6,528.
In Togo, where the country does not have limestone deposits, the Commission said a bag of cement sold for about $6.75, equivalent to N9,180.
By comparison, the FCCPC said market intelligence showed that the retail price of a 50kg bag of cement in Nigeria rose sharply during the first half of 2026.
A bag that reportedly sold for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year, while prices of between N13,000 and N15,000 were reported in some parts of the country by July.
The Commission said its survey showed that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, compared with estimated domestic consumption of approximately 25 to 30 million metric tonnes.
Nigeria is also a net exporter of cement to neighbouring countries.
The FCCPC said it was particularly concerned that the country’s substantial excess production capacity had not resulted in the downward pressure on domestic prices normally expected in a competitive market.
The Commission said industry participants had attributed cement prices to factors including energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs.
However, the FCCPC said it was testing those explanations against verified information on costs, production, pricing and market conditions.
It added that the preliminary findings provided sufficient grounds for the investigation to continue.
The next phase, according to the Commission, will determine whether prevailing 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 conduct prohibited under the Federal Competition and Consumer Protection Act.
Accordingly, the FCCPC said it had issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector.
The companies have been required to provide information and records relating to their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.
Explaining the basis for the intervention, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was part of the Commission’s responsibility to examine market conditions with significant consequences for consumers and the wider economy.
“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. When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” Bello said.
He stressed that the Commission’s competition scrutiny was not aimed at dictating the commercial decisions of businesses, but at determining whether the market was functioning competitively and whether consumers were benefiting from effective competition.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that. Its purpose is to protect the competitive process, so that prices, output and other market outcomes are determined by genuine competition rather than conduct that unlawfully restricts it. That distinction is important to the work we are undertaking,” he said.
The FCCPC said the investigation remains ongoing and that its preliminary findings do not constitute a final determination of liability against any cement manufacturer.
