FCCPC Uncovers Possible Cement Price Manipulation in Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) has established possible manipulation of cement prices in the Nigerian market following an industry-wide investigation into the rising cost of the building material.
The FCCPC disclosed this in a statement issued on Tuesday, August 18, 2026, after a three-month cross-border investigation by its Anticompetitive Practices Department. The Commission said the probe was launched in response to widespread public complaints over the high cost of cement in Nigeria.
The investigation raised concerns over the comparatively high retail price of cement in Nigeria despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.
According to the Commission, a 50kg bag of cement that sold for between N9,300 and N9,700 in January 2026 had risen to between N10,500 and N13,000 by mid-year. By July, prices of between N13,000 and N15,000 were reported in some parts of the country.
The FCCPC said Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption stands at approximately 25 to 30 million metric tonnes. The country is also a net exporter of cement to neighbouring markets.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because of the impact of cement prices on Nigerians and the wider economy.
“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business.”
Bello added that the Commission had a responsibility to establish the facts whenever concerns arise about the functioning of an important market.
“When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” he said.
The Commission also compared Nigeria’s cement prices with those in other African countries as part of its investigation. It found that a bag of cement sold for about $5.40 (N7,344) in Kenya and $4.80 (N6,528) in Tanzania. In Togo, where the Commission noted that there are no limestone deposits, a bag sold for about $6.75 (N9,180).
The FCCPC said the findings raised questions about why Nigeria’s abundant limestone resources and substantial production capacity have not translated into lower domestic prices.
Industry participants identified energy costs, depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs, among factors contributing to the high price of cement.
However, the Commission said it is testing those explanations against verified information on production costs, pricing, market conditions and capacity utilisation.
The FCCPC has now issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector. The companies have been directed to provide information and records relating to their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.
The Commission said the next stage of the investigation would determine whether prevailing cement prices are justified 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 Federal Competition and Consumer Protection Act.
Bello stressed that the investigation was not intended to dictate the commercial decisions of businesses but to determine whether the cement market was functioning competitively.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that.”
He added that the law was designed to protect the competitive process so that prices, output and other market outcomes are determined by genuine competition rather than unlawful conduct.
The FCCPC said the weight of its preliminary findings provides sufficient grounds for the investigation to continue.