The Federal Competition and Consumer Protection Commission (FCCPC) says preliminary findings from an investigation into Nigeria’s cement market have raised concerns over possible manipulation of prices in the sector.

The investigation was launched following widespread complaints about the rising cost of cement, a major input in Nigeria’s construction industry, with the regulator now examining whether the prices being paid by consumers are fully justified by prevailing market conditions.

In a statement issued on Tuesday, the FCCPC said its Anticompetitive Practices Department conducted a three-month investigation, including a cross-border study of cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

The study examined factors including limestone availability, population, production capacity and domestic consumption, among other market conditions.

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The commission said its preliminary findings showed that cement prices in Nigeria were comparatively higher than in some of the markets examined.

Cement prices rise

According to the FCCPC, a 50kg bag of cement that sold for between N9,300 and N9,700 in Nigeria in January 2026 had risen to 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 commission said.

The sharp increase has implications beyond the price consumers pay for a bag of cement. Cement is a basic input for housing and infrastructure construction, meaning sustained increases can feed into the cost of building homes, commercial properties and public infrastructure.

The FCCPC said the price trend was particularly concerning given Nigeria’s substantial limestone resources and installed cement production capacity.

The commission estimates Nigeria’s installed cement production capacity at between 60 million and 65 million metric tonnes annually, while domestic consumption is estimated at between 25 million and 30 million metric tonnes.

Nigeria is also a net exporter of cement to neighbouring markets, according to the FCCPC. The country’s production base is large enough to serve the domestic market and supply some neighbouring countries. In 2024, Nigeria exported about 315,432 tonnes of Portland cement, with Togo, Cameroon and Niger among the recorded destinations, according to World Bank trade data.

The export trade also extends to clinker, an intermediate product used in cement production. Dangote Cement, one of Nigeria’s major producers, reported exports of clinker from its Nigerian operations to markets including Ghana and Cameroon in 2025. The development highlights Nigeria’s role as a supplier within the regional cement market, even as domestic consumers continue to face rising prices.

In a competitive market, the commission said, such a gap between installed capacity and domestic consumption would ordinarily be expected to exert downward pressure on prices.

The regulator is therefore examining why the apparent excess capacity has not translated into lower prices for Nigerian consumers.

Nigeria compared with Kenya, Tanzania

As part of the investigation, the FCCPC compared Nigeria’s cement market with those of several other countries.

In Kenya, which has a population of about 58.6 million, domestic cement demand was approximately 9.3 million metric tonnes per annum in 2025, according to the commission.

A 50kg bag of cement sold for about $5.40, equivalent to approximately N7,344 based on the exchange rate used in the study.

In Tanzania, with a population of about 66.3 million and estimated domestic cement demand of 9.3 million metric tonnes in 2025, a bag sold for about $4.80, or N6,528.

Both countries have limestone deposits, which is the basic raw material for cement production.

The commission also examined Togo, where it said a bag of cement sold for about $6.75, equivalent to N9,180, despite the country not having limestone deposits.

The comparisons are intended to help the FCCPC determine whether differences in production costs and other legitimate market conditions adequately explain the variation in cement prices.

The FCCPC said all major cement manufacturers in Nigeria cooperated with the investigation by making their records available, with the exception of one company.

Publicly available estimates reviewed by the commission indicate that three major companies account for more than 90 per cent of installed cement production capacity in Nigeria.

Industry participants cited energy costs, the depreciation of the naira and its effect on imported machinery and spare parts, as well as transportation and logistics expenses, among factors contributing to the price of cement.

The commission explained that it was testing those explanations against verified information on production costs, pricing, capacity utilisation and prevailing market conditions.

It said the preliminary findings provide sufficient grounds for the investigation to continue.

The next stage, according to the commission, will 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 or other anti-competitive practices.

FCCPC summons cement firms

The commission said it has issued Notices of Commencement of Investigation and Summons to Produce to key players in the industry.

The companies are required to provide information and records relating to their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.

The FCCPC’s intervention comes within its statutory responsibility under the Federal Competition and Consumer Protection Act 2018 to promote fair and competitive markets and protect consumers.

The commission has in recent months also used its competition mandate to scrutinise pricing practices in other sectors. In February, it said an industry-wide review of domestic airline fares had uncovered patterns it described as possible price manipulation during the 2025 festive period, while noting that other market factors remained under consideration.

For the cement investigation, the FCCPC said the companies’ records would help determine whether the price increases are consistent with genuine changes in costs and market conditions or whether other practices may be affecting supply and prices.

‘We have a duty to establish the facts’

The Executive Vice Chairman of the FCCPC, Tunji Bello, said the investigation was necessary because of the importance of cement to the Nigerian economy.

“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business,” Mr Bello said.

He explained that the commission’s role was not to dictate the prices businesses should charge or prevent companies from making legitimate profits.

“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that,” he added.

According to him, the objective of competition regulation is to ensure that prices, production and other market outcomes are determined by genuine competition rather than unlawful conduct that restricts competition.

The FCCPC said its investigation would continue before any final determination is made on whether there have been violations of Nigeria’s competition laws.