Federal Competition and Consumer Protection Commission (FCCPC) says preliminary findings from a three-month investigation into Nigeria’s cement industry have uncovered possible evidence of price manipulation, prompting the commission to deepen its probe into the sector.
The findings, contained in a press release issued by the Commission on Tuesday, followed an extensive cross-border investigation conducted by its Anticompetitive Practices Department (ACP). The exercise was launched after widespread complaints from Nigerians over the rising cost of cement despite the country’s abundant limestone deposits and strong local production capacity.
According to the FCCPC, the investigation compared Nigeria’s cement market with several African countries, including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, to determine whether prevailing local prices reflect genuine production costs or possible anti-competitive practices.
The Commission said almost all major cement manufacturers cooperated with the investigation by providing requested records, except one company that failed to do so.
Publicly available industry data reviewed by the FCCPC indicates that three leading manufacturers control more than 90 per cent of Nigeria’s installed cement production capacity.
As part of the study, the Commission examined key indicators such as limestone availability, production capacity, domestic consumption and population across the selected countries.
Its findings showed that Kenya, with a population of about 58.6 million, records an annual cement demand of roughly 9.3 million metric tonnes, while a bag of cement sells for about $5.40 (N7,344).
Similarly, Tanzania, which has a population of 66.3 million and an annual demand of 9.3 million metric tonnes, sells a bag of cement for approximately $4.80 (N6,528).
In Togo, where limestone deposits are absent, a bag of cement reportedly sells for $6.75 (N9,180).
By contrast, market intelligence reviewed by the Commission shows that the retail price of cement in Nigeria has risen sharply throughout 2026.
According to the report, a 50kg bag that sold between N9,300 and N9,700 in January increased to between N10,500 and N13,000 by the middle of the year. By July, prices had climbed further, reaching between N13,000 and N15,000 in some parts of the country.
The FCCPC noted that Nigeria currently has an installed production capacity estimated at between 60 and 65 million metric tonnes annually, while domestic consumption is estimated at only 25 to 30 million metric tonnes. The country also exports cement to neighbouring nations.
The Commission expressed concern that such excess production capacity has failed to translate into lower prices for Nigerian consumers.
Industry operators told investigators that several factors have contributed to rising prices, including higher energy costs, the depreciation of the naira, the cost of imported machinery and spare parts, as well as transportation and logistics expenses.
However, the FCCPC said it is independently verifying those claims against production costs, pricing records and prevailing market conditions.
The Commission stated: “However, the weight of preliminary findings provides sufficient grounds for the investigation to continue.”
It added: “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.”
Consequently, the FCCPC disclosed that it has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry as it intensifies efforts to establish whether competition laws have been violated.
