The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered indications of possible price manipulation in Nigeria’s cement market, raising concerns about anti‑competitive practices in one of the country’s most strategic industries.
According to a 40‑page field report released after a three‑month cross‑border investigation, Nigeria has an installed cement production capacity of 60–65 million metric tons annually, while domestic consumption is estimated at just 25–30 million tons. Despite this surplus, cement prices have continued to rise sharply.
Market intelligence reviewed by the FCCPC showed that the price of a 50kg bag of cement, which sold for ₦9,300–₦9,700 in January 2026, rose to ₦10,500–₦13,000 by mid‑year. By July, prices had climbed further to ₦13,000–₦15,000 per bag in some parts of the country.
The Commission compared Nigeria’s cement prices with other African markets. In Kenya $5.40 per bag (~₦7,344), and in Tanzania per bag costs $4.80 per bag (~₦6,528), while in Togo, a bag of cement costs $6.75 per bag (~₦9,180), despite lacking limestone deposits in those countries.
Nigeria’s higher prices, despite abundant limestone and surplus production, prompted FCCPC to question whether legitimate costs alone explain the increases.
Cement manufacturers attributed the rising prices to high cost of energy supply, depreciation of the naira, affecting imported machinery and spare parts and high cost of transportation and logistics expenses
FCCPC stated it is testing these claims against verified data on production costs, pricing, and market conditions.
The Commission has issued Notices of Commencement of Investigation and Summons to Produce to key industry players, requiring them to provide detailed records on pricing methodologies, production, exports, and commercial relationships.
Executive Vice Chairman Tunji Bello emphasized that cement occupies a strategic place in Nigeria’s economy, affecting housing, infrastructure, and the cost of doing business. “When concerns persist about how such an important market is functioning, the Commission has a duty to establish the facts,” he said.
The probe is significant because three major producers control over 90% of Nigeria’s installed capacity, raising fears of market concentration and possible collusion. Analysts warn that unchecked manipulation could worsen housing costs and infrastructure development.
Civil society groups have welcomed the investigation, urging FCCPC to ensure accountability and protect consumers from exploitative practices.
The outcome of the FCCPC probe could reshape Nigeria’s cement industry, with potential reforms to enforce competition and stabilize prices. For millions of Nigerians, the hope is that cement, a basic building material, becomes more affordable in line with the country’s production capacity.
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