Cement Prices: FCCPC Opens Probe over Alleged Market Manipulation Amid Excess Production Capacity

The Federal Competition and Consumer Protection Commission (FCCPC) has initiated a new investigation into the Nigerian cement market following preliminary indications of potential price manipulation, despite the nation's substantial cement production capacity and reported surplus supply, according to the commission's Director of Corporate Affairs, Mr. Ondaje Ijagwu.

The three-month cross-border inquiry, conducted by the FCCPC's Antitrust Practices Department, examined the discrepancy between the country's cement production capacity and consumer prices, prompting the probe amid widespread grievances over the high cost of cement in Nigeria.

FCCPC Executive Vice Chairman/Chief Executive, Mr. Tunji Bello, emphasized that the regulator's intervention aimed to safeguard the competitive process rather than dictate commercial decisions of cement manufacturers. Bello stated that cement's significance to various sectors, including housing, commercial development, and public infrastructure, necessitated the FCCPC's involvement to establish the facts surrounding market operations.

He clarified that the investigation would not assess the legitimacy of businesses' commercial decisions but would determine whether the market functions competitively and if consumers benefit from competition.

Nigeria's cement production capacity is estimated at approximately 65 million metric tonnes annually, with domestic consumption ranging between 25 and 30 million metric tonnes. Despite the reported excess capacity, the price of cement has risen significantly since January 2026, with prices in mid-year soaring between N10,500 and N13,000 per 50kg bag, and reaching between N13,000 and N15,000 in some regions by July.

The FCCPC's investigation, which also encompassed markets in Kenya, Tanzania, Togo, South Africa, Egypt, Morocco, and Algeria, aimed to verify the connection between production costs, capacity utilization, and prevailing market conditions with the observed price escalation.

The commission's initial findings, based on a 40-page industry-wide field investigation report, indicated that the substantial limestone deposits, domestic production base, and installed cement capacity relative to consumption had not generated the expected downward pressure on domestic cement prices in a competitive market. FCCPC is now examining potential factors contributing to the price surge, including energy costs, the depreciation of the Nigerian Naira, and transportation and logistics expenses.

However, the commission is concurrently investigating these factors against verified information on production costs, pricing, and market conditions to ascertain whether the price increase can be justified by legitimate costs or if there are signs of anti-competitive conduct or market abuse.