Cyril Mbah, Bureau Chief, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered preliminary evidence of possible price manipulation in Nigeria’s cement market and has vowed to apply very tough sanctions against any company or members of the syndicate found culpable.
This followed a three-month, industry-wide investigation by the Commission’s Anti-competitive Practices Department (ACP), which was triggered by widespread public complaints over the high cost of cement, a critical input in the country’s construction sector.
In a 40-page field report released on Tuesday, the FCCPC said concerns were heightened by the fact that cement sells far more in Nigeria than in other African countries, despite Nigeria’s vast limestone deposits and huge installed production capacity.
“Significantly, all the major cement manufacturers in the country, except one of them, cooperated with the Commission by making their records available for scrutiny,” the report stated.
Public estimates show that three major companies control more than 90 percent of installed capacity.
As part of the study, the Commission compared Nigeria’s market with Kenya, Tanzania, Togo, South Africa, Egypt, Morocco and Algeria.
Metrics used included limestone availability, population, production capacity and consumption.
In Kenya, with a population of 58.6 million, domestic cement demand is about 9.3 million metric tonnes per annum and a bag sells for $5.40, about N7,344.
Tanzania, with 66.3 million people, also has 9.3 million MTPA demand and a bag sells for $4.80, about N6,528.
Even Togo, which has no limestone deposit, sells a bag for $6.75, about N9,180, the Commission noted.
By contrast, market intelligence reviewed by the FCCPC showed that a 50kg bag of cement in Nigeria rose from between N9,300 and N9,700 in January 2026 to between N10,500 and N13,000 by mid-year.
By July, prices ranging from between N13,000 and N15,000 per bag were reported in some parts of the country.
The Commission said Nigeria has installed cement production capacity of 60 to 65 million metric tonnes annually, while domestic consumption is estimated at 25 to 30 million metric tonnes.
Nigeria is also a net exporter of cement to neighbouring markets.
“Of particular concern 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 report said.
Industry players blamed energy costs, Naira depreciation, cost of imported machinery and spare parts, and logistics for the price surge.
The Commission said it is testing these explanations against verified data on costs, production, pricing and market conditions.
Accordingly, the FCCPC has issued Notices of Commencement of Investigation and Summons to key players in the sector.
The companies are required to provide records on pricing methodologies, production, capacity utilisation, exports and commercial relationships.
Executive Vice Chairman of the FCCPC, Mr. Tunji Bello, said the probe reflects the Commission’s duty to protect consumers and the economy.
“Cement occupies a strategic place in the Nigerian economy. When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” he said.
Bello clarified that competition law does not stop businesses from making profits.
He stated, however, that “Its purpose is to protect the competitive process, so that prices and output are determined by genuine competition rather than conduct that unlawfully restricts it.
That distinction is important to the work we are undertaking,” he added.
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