The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over possible manipulation in Nigeria’s cement market after finding that the sharp rise in prices is difficult to reconcile with the country’s large production capacity.
The commission’s preliminary findings followed a three-month investigation into the sector, prompted by widespread complaints from consumers over the rising cost of cement. Its findings are contained in a 40-page field report prepared by the Anticompetitive Practices Department.
For Nigerians building homes, completing unfinished projects or working in the construction industry, the issue is particularly significant. Brandspur Banking News Desk reports that the price of a 50kg bag, which was between N9,300 and N9,700 in January 2026, had climbed to between N10,500 and N13,000 by the middle of the year.
By July, the commission said, prices of between N13,000 and N15,000 were being reported in some parts of the country. The increases mean that a construction project requiring hundreds of bags can now cost millions of naira more than it would have at the beginning of the year.
The FCCPC is now questioning why prices have remained so high when Nigeria has substantial limestone deposits and significant domestic manufacturing capacity.
According to the commission, Nigeria has installed cement production capacity of more than 60 million to 65 million metric tonnes a year. Domestic consumption, however, is estimated at only about 25 million to 30 million metric tonnes annually.
In simple terms, Nigerian factories are capable of producing considerably more cement than the country currently consumes. Nigeria is also a net exporter of cement to neighbouring markets.
Ordinarily, the FCCPC said, such excess capacity would be expected to create competitive pressure and help keep prices in check. Instead, consumers have watched the cost of cement continue to climb.
The regulator examined the Nigerian market alongside those in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. It looked at factors including limestone availability, population, production capacity and domestic demand.
In Kenya, for example, the FCCPC estimated 2025 domestic cement demand at 9.3 million metric tonnes. The country has a population of about 58.6 million, yet a 50kg bag of cement in Nairobi was reported at $5.40, equivalent to N7,344 using the commission’s conversion.
Tanzania, with a population of about 66.3 million, also recorded estimated cement demand of 9.3 million metric tonnes in 2025. The FCCPC put the price of a bag there at $4.80, or N6,528.
The comparison was not limited to countries with large limestone deposits. In Togo, which the FCCPC said does not have limestone deposits, a bag of cement was reported at $6.75, equivalent to N9,180.
The commission said major cement manufacturers cooperated with the investigation by making their records available, with one exception. It also found that three major companies account for more than 90 percent of Nigeria’s installed cement production capacity.
Manufacturers have identified several factors that they say are driving up prices. These include energy costs, the depreciation of the naira, higher costs of imported machinery and spare parts, as well as transportation and logistics expenses.
The FCCPC is not dismissing those explanations. Instead, it said it is comparing them with verified information on production costs, pricing, capacity utilisation and other market conditions.
The regulator will now investigate whether the prices can be justified by genuine costs or whether there is evidence of coordinated conduct, abuse of market power, restrictions on domestic supply or other practices prohibited under the Federal Competition and Consumer Protection Act.
Key industry players have already received notices of investigation and summonses requiring them to submit information on their pricing methods, production, capacity utilisation, exports and commercial relationships.
FCCPC chief executive Tunji Bello said the commission’s intervention was not aimed at telling companies how to run their businesses. Its responsibility, he said, is to establish whether the market is operating competitively and whether consumers are receiving the benefits of that competition.
For families already struggling with the cost of building, the outcome of the investigation could be important. Cement is a basic component of housing and infrastructure, so sustained increases can affect not only individual building projects but also the wider cost of construction.
The FCCPC has not concluded that cement manufacturers manipulated prices. Its findings remain preliminary, and the ongoing investigation will determine whether the current prices are the result of legitimate market costs or possible anti-competitive conduct.
