Cement prices manipulated in Nigeria, says FCCPC

The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered preliminary evidence suggesting potential price manipulation in the Nigerian cement market. This finding comes from a 40-page field report compiled after a three-month investigation by the FCCPC's Anticompetitive Practices Department (ACP). Director of Corporate Affairs, Ondaje Ijagwu, explained that the inquiry stemmed from numerous complaints about the high cost of cement, a crucial element of Nigeria's construction industry.

He noted that while Nigeria possesses significant limestone deposits and boasts a large domestic production capacity, the country's retail cement prices were notably higher than those in other markets.

The investigation focused on comparing cement prices in Nigeria with those in neighboring countries, including Kenya, Tanzania, South Africa, Egypt, Morocco, and Algeria. The ACP examined various factors, such as limestone availability, population, production capacity, and domestic consumption. For example, Kenya, with a population approximately 76% lower than Nigeria's, estimated domestic cement demand at 9.3 million metric tonnes per annum (MTPA) in 2025, with a retail price of $5.40 (N7,344) per bag.

Similarly, Tanzania, with a population of 66.3 million, had an estimated domestic cement demand of 9.3 million MTPA in 2025, priced at $4.80 (N6,528) per bag. Togo, which lacks limestone deposits, saw a bag of cement priced at $6.75 (N9,180).

In contrast, Nigerian cement prices surged during the first half of 2026, with a 50kg bag costing between N9,300 and N9,700 in January, rising to between N10,500 and N13,000 by mid-year and reaching N13,000 to N15,000 by July in some regions. The FCCPC's survey revealed that Nigeria possesses production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is estimated at 25 million to 30 million metric tonnes.

This substantial excess capacity is a cause for concern, as it has not led to downward pressure on domestic prices, which would typically occur in a competitive market.

The FCCPC is examining potential factors contributing to the high cement prices, such as energy costs, the depreciation of the Nigerian naira, the impact of imported machinery and spare parts, and transportation and logistics expenses. The Commission is conducting further investigation to determine whether the high cement prices can be attributed to legitimate costs and market conditions or if there is evidence of coordinated conduct, abuse of market power, restricted domestic supply, anti-competitive distribution practices, or other anti-competitive behavior.

The investigation includes issuing notices of commencement and summonses to key industry players, requiring them to provide information and records related to their pricing methodologies, production and capacity utilization, exports, and commercial relationships.

Tunji Bello, the FCCPC's Executive Vice-Chairman and CEO, emphasized the significance of the investigation, stating that cement plays a critical role in the Nigerian economy. He highlighted that the investigation aimed to uncover the facts behind the persisting concerns about the market's functioning and its impact on consumers and the broader economy.