FCCPC probes cement price manipulation as Nigerians pay more than African peers

FCCPC probes cement price manipulation as Nigerians pay more than African peers

The Federal Competition and Consumer Protection Commission (FCCPC) has launched a deeper investigation into the Nigerian cement industry following preliminary findings that the rising price of cement may not be fully explained by legitimate production and market costs.

The commission said its three-month inquiry raised concerns about possible manipulation of cement prices after receiving widespread complaints over the soaring cost of the building material despite Nigeria’s substantial limestone deposits and large installed production capacity.

The investigation was carried out by the FCCPC’s Anticompetitive Practices Department (ACP) and included a cross-border comparison of Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

The study examined factors including limestone availability, population, production capacity, domestic consumption and retail prices to determine whether prevailing prices in Nigeria were consistent with market conditions.

According to the commission, the findings showed a notable disparity between cement prices in Nigeria and those in some other African markets.

A 50kg bag of cement that sold for between ₦9,300 and ₦9,700 in January 2026 rose to between ₦10,500 and ₦13,000 by the middle of the year. By July, prices of between ₦13,000 and ₦15,000 were reported in some parts of the country.

The FCCPC said its comparison found that a 50kg bag sold for about $5.40, equivalent to ₦7,344, in Kenya, while the same quantity was around $4.80, or ₦6,528, in Tanzania.

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In Togo, where the commission noted the absence of significant limestone deposits, a 50kg bag sold for approximately $6.75, equivalent to ₦9,180.

The price disparity has prompted the regulator to question why Nigeria’s substantial natural-resource base and production capacity have not resulted in stronger downward pressure on domestic prices.

The FCCPC estimates that Nigeria has installed cement production capacity of between 60 million and 65 million metric tonnes annually, compared with domestic consumption of approximately 25 million to 30 million metric tonnes.

The commission also noted that Nigeria is a net exporter of cement and clinker, making the continued high domestic prices a key issue in its investigation.

However, the FCCPC stressed that it has not concluded that any cement manufacturer has violated competition laws. The preliminary findings, it said, only provide sufficient grounds for further investigation.

The commission is examining whether prevailing prices can be justified by legitimate costs or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply or anti-competitive distribution practices.

Cement producers and other industry participants have cited several factors behind the higher prices, including energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses.

The FCCPC said it was testing those explanations against verified information on production costs, pricing, capacity utilisation, exports and broader market conditions.

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As part of the investigation, the commission has issued Notices of Commencement of Investigation and Summons to Produce to key industry participants.

The companies are expected to provide information covering their pricing methodologies, production levels, capacity utilisation, exports and commercial relationships.

FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello said the investigation was necessary because cement plays a strategic role in the Nigerian economy.

According to Bello, the cost of cement directly affects housing, commercial property development, public infrastructure and the wider cost of doing business.

The probe also comes amid repeated calls from the Federal Government for cement manufacturers to reduce prices.

In June 2026, Minister of Works David Umahi urged cement producers to reduce prices, arguing that the high cost of the material was increasing the cost of government infrastructure projects and contributing to demands for contract variations.

The government had previously reached an understanding with major cement producers, including Dangote Cement, BUA Cement and HBM Nigeria, that cement should generally sell within the ₦7,000 to ₦8,000 range per 50kg bag, depending on location.

Despite those discussions, retail prices have remained considerably higher in several parts of Nigeria.

Industry financial results also show that major cement producers have continued to record strong revenues amid sustained construction demand and higher prices. The development, however, does not by itself establish that any company has engaged in anti-competitive conduct.

The FCCPC must now determine whether the high cost of cement in Nigeria is primarily the result of legitimate economic pressures or whether unlawful practices are contributing to the price disparity.

The outcome of the investigation could have significant implications for consumers, builders, contractors, property developers and the construction industry, particularly as high building-material costs continue to affect housing affordability and infrastructure development.

For now, the commission has emphasised that its findings remain preliminary and that the investigation is ongoing. Any regulatory or enforcement action will depend on the evidence gathered during the process.

 

FCCPC probes cement price manipulation as Nigerians pay more than African peers