The Federal Competition and Consumer Protection Commission (FCCPC) has opened a further investigation into possible manipulation of cement prices in Nigeria following a three-month study of the sector.
The commission said its preliminary findings suggested that the prevailing prices of cement could not be fully explained by market conditions, despite Nigeria’s substantial production capacity and limestone deposits.
The investigation was conducted by the FCCPC’s Anticompetitive Practices Department in response to widespread complaints over the rising cost of cement.
In a statement issued on Tuesday by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, the commission said the study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The study examined factors including limestone availability, population, cement production capacity, consumption and retail prices.
According to the commission, Nigeria has installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, while domestic consumption is estimated at about 25 million to 30 million metric tonnes.
The FCCPC noted that Nigeria also has substantial limestone deposits and remains a net exporter of cement to some neighbouring countries.
Despite the reported excess production capacity, however, domestic cement prices have continued to rise.
The commission said market intelligence showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, increased to between N10,500 and N13,000 by mid-year.
By July, prices had risen further to between N13,000 and N15,000 in some parts of the country.
The FCCPC’s cross-border comparison also showed lower cement prices in some African markets.
In Kenya, where the population is about 58.6 million and domestic cement demand was estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for approximately $5.40, equivalent to N7,344.
In Tanzania, with a population of about 66.3 million and similar estimated cement demand, a 50kg bag sold for approximately $4.80, equivalent to N6,528.
In Togo, where the commission noted that there are no limestone deposits, cement retailed at about $6.75, equivalent to N9,180 per bag.
The FCCPC said the price differences raised questions about why Nigeria’s significant production capacity and access to raw materials had not resulted in greater downward pressure on domestic prices.
Industry participants have attributed the high cost of cement to factors including energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses.
However, the commission said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.
The FCCPC said the preliminary findings provided sufficient grounds for the investigation to continue.
The ongoing probe will determine whether prevailing cement prices are being driven by legitimate costs and market conditions or by possible anti-competitive practices.
The commission said it would examine possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
As part of the investigation, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key industry players.
The notices require companies to provide records relating to pricing methodologies, production, capacity utilisation, exports and commercial relationships.
The commission said the investigation would establish whether the prevailing prices could be justified by legitimate business costs or whether there was evidence of conduct contrary to the provisions of the Federal Competition and Consumer Protection Act.
Commenting on the probe, the FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because of cement’s strategic importance to the Nigerian economy.
Bello said the price of cement affects the cost of housing, commercial property development, public infrastructure and the overall cost of doing business.
He stressed that the investigation was not intended to dictate how companies conduct their businesses or prevent them from making legitimate profits.
According to him, businesses are entitled to make commercial decisions and earn returns on their investments, while competition law is designed to protect the competitive process and ensure that prices and output are determined by genuine competition.
The investigation comes amid continued pressure on Nigeria’s construction sector, where rising cement prices have increased the cost of housing and infrastructure projects.
The FCCPC said its findings and further investigation would determine whether the current pricing structure reflects legitimate market forces or potentially unlawful anti-competitive conduct.
