FCCPC uncovers evidence of possible cement price manipulation in Nigeria

Abdullateef Fowewe

The Federal Competition and Consumer Protection Commission (FCCPC) has claimed preliminary findings from a three-month, industry-wide probe indicate possible manipulation of cement prices in Nigeria, prompting the regulator to issue Notices of Commencement of Investigation and Summons to Produce to key players in the sector.

In a statement on Tuesday, the FCCPC said its Anticompetitive Practices Department (ACP) collated a 40-page field report after a cross-border study undertaken in response to “widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.”

The commission highlighted concerns over Nigeria’s “comparatively high retail price of cement despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.”

According to the FCCPC, Nigeria has installed cement production capacity of more than 60–65 million metric tonnes annually, while estimated domestic consumption is approximately 25–30 million metric tonnes, and the country is a net exporter to neighbouring markets.

“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 statement read.

Market intelligence reviewed by the commission shows a quick rise in the retail price of a 50kg bag of cement in the first half of 2026.

A bag reportedly selling for between ₦9,300 and ₦9,700 in January was trading at between ₦10,500 and ₦13,000 by mid-year, and by July, prices of between ₦13,000 and ₦15,000 were reported in some parts of the country.

Recent dealer listings also show Dangote, BUA and Lafarge cement prices ranging from about ₦8,900 to over ₦14,000 depending on the seller and location.

The ACP investigation extended to markets in Kenya, Tanzania, Togo, South Africa, Egypt, Morocco and Algeria, using metrics such as limestone availability, population, production capacity and consumption.

In Kenya, with a population of 58.6 million and domestic cement demand of about 9.3 million metric tonnes per annum in 2025, a bag retails at $5.40 (about ₦7,344), while in Tanzania (66.3 million population; 9.3m MTPA demand), a bag sells for $4.80 (about ₦6,528).

Even in Togo, which lacks limestone deposits, a bag sells for $6.75 (about ₦9,180), below the upper end of Nigeria’s current range.

The FCCPC said all major cement manufacturers in Nigeria cooperated by making their records available “except one of them,” while publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country.

Industry participants have pointed to energy costs, naira depreciation and its effect on imported machinery and spare parts, as well as transportation and logistics costs, as factors driving prices, but the commission said it is “testing these explanations against verified information on costs, production, pricing and market conditions.”

The commission stressed that the investigation is not about dictating how businesses operate, but about determining “whether the market is functioning competitively and whether consumers are benefiting from effective competition.”

The next stage will seek to establish “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.”

To that end, the FCCPC has issued formal notices and summons requiring key players to provide information on pricing methodologies, production, capacity utilisation, exports and relevant commercial relationships as the probe continues.