The Federal Competition and Consumer Protection Commission has flagged possible manipulation of cement prices in Nigeria following a three-month investigation into the rising cost of the building material despite the country’s substantial production capacity and limestone deposits.
The commission said its preliminary findings showed that the prevailing prices of cement could not be fully explained by market conditions, prompting it to open a further investigation into possible anti-competitive practices in the sector.
The findings followed a cross-border study conducted by the FCCPC’s Anticompetitive Practices Department in response to widespread complaints over the high 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, production capacity, consumption and retail prices.
The statement read, “Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market. This is the preliminary summation of the 40-page field reports collated following a three-month cross-border study by the Anticompetitive Practices Department of the Commission, undertaken in response to widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.”
The FCCPC said Nigeria had substantial limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million metric tonnes.
Despite the reported excess capacity and Nigeria’s position as a net exporter to neighbouring countries, the commission said domestic cement prices had continued to rise.
According to the commission, market intelligence showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, rose to between N10,500 and N13,000 by mid-year.
By July, the price had risen to between N13,000 and N15,000 in some parts of the country.
The FCCPC also found that cement was sold at lower prices in some African markets.
In Kenya, where the population is about 58.6 million and cement demand was estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344.
In Tanzania, with a population of about 66.3 million and similar cement demand, the product sold for about $4.80, equivalent to N6,528, while in Togo, which the commission said had no limestone deposits, cement retailed at about $6.75, or N9,180 per bag.
The commission said the price disparity raised questions about why Nigeria’s significant production capacity and raw material endowment had not translated into greater downward pressure on prices.
The commission said the price disparity raised questions about why Nigeria’s significant production capacity and raw material endowment had not translated into greater downward pressure on prices.
It said industry players had attributed the high prices to energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses.
However, the FCCPC said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.
“Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity.
“Information provided by industry participants has identified energy costs, depreciation of the Naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among the factors contributing to cement prices. The Commission is testing these explanations against verified information on costs, production, pricing and market conditions. However, the weight of preliminary findings provides sufficient grounds for the investigation to continue,” the statement said.
The FCCPC said the ongoing probe would determine whether cement prices were being driven by legitimate costs and market conditions or by anti-competitive practices.