Regulator questions why cement remains expensive despite Nigeria’s huge production capacity and abundant limestone deposits….
The Federal Competition and Consumer Protection Commission (FCCPC) has intensified its scrutiny of Nigeria’s cement industry after a preliminary investigation raised concerns about possible price manipulation and other anti-competitive practices in the market.
The regulator said its initial findings point to questions that require further investigation, particularly as the price of cement in Nigeria continues to rise despite the country having substantial limestone reserves and production capacity well above domestic demand.
The findings were contained in a 40-page field report prepared by the FCCPC’s Anticompetitive Practices Department (ACP) following a three-month assessment of Nigeria’s cement market and selected markets across Africa.
The investigation was launched amid growing concerns over the rising cost of cement, a critical commodity for Nigeria’s construction industry.
According to the FCCPC, the central question is why cement remains relatively expensive in Nigeria when local manufacturers have access to major raw materials and the country reportedly has significant excess production capacity.
The commission said most of the major cement manufacturers cooperated with the investigation and provided access to their records, although one company had yet to do so.
Publicly available estimates, it added, indicate that three major companies control more than 90 per cent of Nigeria’s installed cement production capacity, raising further questions about competition and market concentration.
As part of its investigation, the FCCPC compared Nigeria with cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.
The assessment considered factors including population size, limestone availability, domestic consumption and production capacity.
In Kenya, which has a population of about 58.6 million, domestic cement demand was estimated at approximately 9.3 million metric tonnes per annum in 2025.
Despite its own limestone resources, the retail price of a 50kg bag of cement in Nairobi was estimated at about $5.40, equivalent to roughly ₦7,344.
Tanzania recorded similar estimated annual cement demand of 9.3 million tonnes, with a population of approximately 66.3 million. The FCCPC said a bag of cement sold for about $4.80, or ₦6,528.
The regulator also cited Togo, where a bag reportedly sold for around $6.75, or ₦9,180, despite the country not having significant limestone deposits.
Nigeria’s prices, however, have moved sharply higher.
The FCCPC said cement that reportedly sold for between ₦9,300 and ₦9,700 per bag in January 2026 had risen to between ₦10,500 and ₦13,000 by the middle of the year.
By July, prices of between ₦13,000 and ₦15,000 were being reported in some parts of the country.
The commission’s preliminary assessment also highlighted what it described as a significant mismatch between Nigeria’s production capacity and actual domestic consumption.
Nigeria’s installed cement production capacity is estimated at more than 60 million to 65 million metric tonnes annually, according to the FCCPC.
Domestic consumption, meanwhile, is estimated at only about 25 million to 30 million tonnes per year.
That means the country has substantial production capacity beyond what is required to meet current domestic demand.
Nigeria is also a net exporter of cement to neighbouring countries, the regulator noted.
Ordinarily, the FCCPC said, such excess capacity could be expected to create competitive pressure among producers and potentially help moderate prices.
The fact that this has not happened is one of the issues now being examined by investigators.
Cement manufacturers and other industry participants have pointed to several factors they say are responsible for the increase in prices.
These include rising energy costs, the depreciation of the naira, higher costs of imported machinery and spare parts, as well as transportation and logistics expenses.
The FCCPC said it was testing those explanations against verified data on production costs, pricing, capacity utilisation and broader market conditions.
The commission stressed that its preliminary findings do not yet amount to a final determination of wrongdoing.
However, it said the evidence gathered so far provides sufficient grounds for the investigation to continue.
The next stage of the investigation will focus on determining whether current cement prices are adequately explained by legitimate production costs and prevailing market conditions.
Investigators will also examine whether there is evidence of coordinated pricing, abuse of market power, restrictions on domestic supply, anti-competitive distribution arrangements or other conduct prohibited under Nigeria’s competition law.
The FCCPC said it has issued formal notices of investigation and summonses to key industry players.
The companies have been directed to submit information and records relating to their pricing methods, production levels, capacity utilisation, exports and relevant commercial relationships.
The commission’s Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because cement has consequences far beyond the construction industry.
“Cement occupies a strategic place in the Nigerian economy,” Bello said, noting that its price affects housing, commercial development, public infrastructure and the wider cost of doing business.
He said the commission’s responsibility was to establish what was actually happening in the market rather than rely on assumptions.
Bello also sought to draw a distinction between enforcing competition rules and interfering with legitimate business decisions.
He said cement manufacturers remain entitled to set prices, make commercial decisions and earn profits on their investments.
The regulator’s concern, he explained, is whether those outcomes are being driven by genuine market competition or by practices that unlawfully restrict competition.
The investigation is therefore expected to determine whether the high cost of cement is primarily the result of legitimate economic pressures or whether competition-related factors are contributing to the prices Nigerians currently face.
With cement prices having climbed significantly in 2026, the outcome of the FCCPC investigation could have major implications for manufacturers, builders, developers and millions of Nigerians already struggling with the rising cost of housing and construction.
