FCCPC Uncovers Possible Price Manipulation In Nigeria’s Cement Market, Deepens Probe
By Sunday Etuka
The Federal Competition and Consumer Protection Commission (FCCPC) says preliminary findings from a three-month investigation point to possible manipulation of cement prices in Nigeria, despite the nation’s abundant limestone deposits and substantial surplus production capacity.
In a release issued on Tuesday, the Commission said the findings are drawn from a 40-page field report compiled by its Anticompetitive Practices Department (ACP), following a cross-border study launched in response to widespread complaints over the high cost of cement, a key input in the country’s construction sector.
The investigation was triggered by concerns that Nigeria’s retail cement prices are disproportionately high compared with other markets, a puzzle given the country’s large limestone reserves, strong domestic production base and reported excess installed capacity beyond what local demand requires.
According to the Commission, all major cement manufacturers cooperated by turning over their records to investigators, with one notable exception. Publicly available estimates cited in the report show that just three companies control more than 90% of the country’s installed production capacity.
To benchmark Nigeria’s pricing, the ACP extended its inquiry beyond the country’s borders, examining markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, and weighing factors such as limestone availability, population, production capacity, and consumption levels.
It said the comparisons were stark. Saying that in Kenya, for instance, the 58.6 million population (76% lower than Nigeria’s) has domestic cement demand of approximately 9.3m MTPA (metric tonne per annum) in 2025. The retail price in Nairobi is $5.40 (N7,344). Kenya is endowed with limestone.
“In Tanzania, with a population of 66.3m (72% lower than Nigeria’s) and the domestic cement demand is 9.3m MTPA (2025), a bag of cement sells for $4.80 (N6,528). In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have a limestone deposit.
“Comparatively, in Nigeria, market intelligence reviewed by the Commission shows that the retail price of a 50kg bag of cement rose significantly during the first half of 2026.
“A bag reportedly selling for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year. By July, prices of between N13,000 and N15,000 were reported in some parts of the country,” the FCCPC added.
The Commission’s survey indicates that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption is approximately 25 to 30 million metric tonnes. Nigeria is also a net exporter of cement to neighbouring markets.
“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.
“Next is to determine whether prevailing cement prices can be explained by legitimate costs and market conditions, or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct contrary to the provisions of the FCCPA,” the statement said.
The FCCPC has since issued Notices of Commencement of Investigation and Summons to Produce to the key players in the sector.
