Cement Price Hits N15,000 as FCCPC Summons Manufacturers, Probes Possible Price Manipulation

The Federal Competition and Consumer Protection Commission (FCCPC) has summoned major cement manufacturers in Nigeria as it investigates possible price manipulation in the domestic cement market, following a sharp increase in the price of the building material.

The Commission said its preliminary findings showed that cement prices in Nigeria were significantly higher than in some other African countries, despite the country’s abundant limestone deposits, substantial production capacity and reported excess supply.

The investigation followed widespread complaints from consumers and businesses over the rising cost of cement, a major input in the construction industry.

According to the FCCPC, the price of a 50-kilogramme bag of cement increased from between N9,300 and N9,700 in January 2026 to N10,500-N13,000 by the middle of the year.

By July, the Commission said, the price had risen further to between N13,000 and N15,000 in some parts of the country.

The FCCPC said the prevailing price in Nigeria was almost twice the retail price recorded in some other African countries. Its market comparison showed that a 50kg bag of cement sold for about N7,344 in Nairobi, Kenya, and N6,528 in Tanzania.

The Commission also reviewed prices in Togo, where a 50kg bag reportedly sold for about N9,180, despite the country having no significant limestone deposits.

The findings were contained in preliminary field reports prepared by the FCCPC’s Anticompetitive Practices Department following a three-month cross-border study.

The study covered Kenya, Tanzania and South Africa in Sub-Saharan Africa, as well as Egypt, Morocco and Algeria in North Africa.

The Commission said its assessment considered several factors, including the availability of limestone, population, cement production capacity and domestic consumption.

It noted that Kenya, with a population of about 58.6 million, recorded domestic cement demand of approximately 9.3 million metric tonnes in 2025, while Tanzania, with a population of about 66.3 million, recorded a similar level of demand.

Nigeria, by comparison, has an estimated annual cement production capacity of between 60 million and 65 million metric tonnes, while domestic consumption is estimated at 25 million to 30 million metric tonnes.

The FCCPC also noted that Nigeria is a net exporter of cement to neighbouring countries, adding that the country’s excess installed capacity should ordinarily encourage competition and exert downward pressure on prices.

“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,” the Commission said in its preliminary assessment.

Cement manufacturers have cited rising energy costs, naira depreciation, increased costs of imported machinery and spare parts, transportation and logistics as some of the factors responsible for the price increases.

However, the FCCPC said it was testing those explanations against verified information on production costs, capacity utilisation, pricing structures and prevailing market conditions.

The Commission said the preliminary findings provided sufficient grounds for the investigation to continue, adding that the next phase would determine whether the prevailing prices could be justified by legitimate costs and market conditions or were the result of anti-competitive conduct.

It said the investigation would examine possible coordination among cement producers, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.

The FCCPC said it would also investigate any other conduct that could constitute a violation of the Federal Competition and Consumer Protection Act.

As part of the process, the Commission issued Notices of Commencement of Investigation and Summons to Produce to key companies operating in the cement industry.

The companies were directed to submit information and records relating to their pricing methods, production levels, capacity utilisation, exports and commercial relationships.

According to the Commission, all major cement manufacturers had cooperated by providing access to their records, except one company.

Publicly available estimates indicate that three major companies control more than 90 per cent of Nigeria’s installed cement production capacity.

The FCCPC stressed that its investigation was not aimed at controlling the commercial decisions of cement manufacturers or preventing them from making legitimate profits.

The Executive Vice-Chairman and Chief Executive Officer of the Commission, Tunji Bello, said the agency’s responsibility was to establish whether the market was functioning competitively and whether consumers were benefiting from effective competition.

“Cement occupies a strategic place in the Nigerian economy,” Bello said.

He noted that the price of cement directly affects the cost of building homes, developing commercial properties, delivering public infrastructure and operating businesses.

“When concerns persist over how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” he said.

Bello explained that competition law allows businesses to make legitimate commercial decisions and earn returns on their investments.

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

He added that the law was designed to protect the competitive process and ensure that prices, production and other market outcomes were determined by genuine competition rather than practices that unlawfully restrict it.

“Its purpose is to protect the competitive process, so that prices, output and other market outcomes are determined by genuine competition rather than conduct that unlawfully restricts it,” Bello said.

He stressed that the distinction would remain central to the Commission’s ongoing investigation into the cement market.