FCCPC Probes Possible Cement Price Manipulation In Nigeria

FCCPC Probes Possible Cement Price Manipulation in Nigeria

The Federal Competition and Consumer Protection Commission FCCPC has uncovered indications of possible price manipulation in Nigeria’s cement market, raising fresh concerns over the continued rise in cement prices despite the country’s substantial production capacity and abundant limestone resources. The preliminary findings followed a three-month, industry-wide investigation by the Commission’s Anticompetitive Practices Department. The probe was launched in response to widespread complaints over the rising cost of cement, a key input in Nigeria’s construction sector. According to the FCCPC, Nigeria has installed cement production capacity of more than 60–65 million metric tonnes annually, while domestic consumption is estimated at about 25–30 million tonnes. The country is also a net exporter of cement to neighbouring markets.

Despite this apparent excess capacity, the price of a 50kg bag of cement reportedly climbed from ₦9,300–₦9,700 in January 2026 to ₦10,500–₦13,000 by mid-year, with prices reaching ₦13,000–₦15,000 in some locations by July. The Commission also compared Nigeria’s prices with other African markets. It reported that a 50kg bag sold for about ₦7,344 in Kenya, ₦6,528 in Tanzania and ₦9,180 in Togo, prompting questions about whether legitimate production and distribution costs fully explain the higher Nigerian prices.

The FCCPC said industry players have cited factors including energy costs, naira depreciation, imported machinery and spare-parts costs, as well as transportation and logistics expenses. However, the Commission is examining whether these factors adequately justify prevailing prices. The next phase of the investigation will examine possible coordinated conduct, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices and other conduct prohibited under the Federal Competition and Consumer Protection Act. The FCCPC has issued notices of commencement of investigation and summonses to key industry players to provide information on their pricing, production, capacity utilisation, exports and commercial relationships. The Commission stressed that the findings are preliminary and do not constitute a final determination of liability against any company. Cement prices directly affect the cost of housing, infrastructure and construction across Nigeria. Any finding of anti-competitive conduct could have significant implications for manufacturers, distributors and millions of consumers.