The Federal Competition and Consumer Protection Commission (FCCPC) has launched a fresh investigation into Nigeria’s cement industry over suspected price manipulation and other possible anti-competitive practices.

The Commission said the investigation followed a three-month cross-border assessment by its Anticompetitive Practices Department, conducted in response to widespread complaints over the persistent increase in cement prices across the country.

The 40-page field report examined cement markets in Nigeria and several African countries, including Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

The review considered factors such as limestone availability, population, production capacity, domestic consumption and retail prices.

According to the FCCPC, the sharp increase in cement prices is particularly concerning given Nigeria’s abundant limestone deposits, substantial production capacity and reported excess capacity relative to domestic demand.

The Commission said Nigeria has installed cement production capacity of between 60 million and 65 million metric tonnes annually, compared with estimated domestic consumption of only 25 million to 30 million tonnes.

It also noted that Nigeria is a net exporter of cement to neighbouring countries.

Despite the apparent production surplus, however, the FCCPC said cement prices had continued to rise instead of declining as might ordinarily be expected in a competitive market with excess capacity.

Cement Prices Rise Despite Production Capacity

Market intelligence reviewed by the Commission showed a significant increase in the price of a 50kg bag of cement during the first half of 2026.

According to the FCCPC, a bag that sold for between N9,300 and N9,700 in January rose to between N10,500 and N13,000 by mid-year.

By July, prices had reached between N13,000 and N15,000 in some parts of the country.

The Commission compared Nigeria’s cement prices with those in other African markets as part of its assessment.

It said a 50kg bag sold for about $5.40, equivalent to approximately N7,344, in Kenya, while the same quantity sold for about $4.80, or N6,528, in Tanzania.

In Togo, where the country does not have significant limestone deposits, the price was about $6.75, equivalent to N9,180.

The FCCPC said cement industry operators had attributed the rising prices to factors including energy costs, the depreciation of the naira and its effect on imported machinery and spare parts, as well as transportation and logistics expenses.

However, the Commission said it was examining those explanations against verified data on production costs, pricing structures, capacity utilisation and broader market conditions.

FCCPC Seeks Industry Records

The Commission said its preliminary findings were sufficient to justify further investigation into whether current cement prices could be explained by legitimate production and distribution costs.

It said the probe would also determine whether there was evidence of coordinated conduct, abuse of market power, restrictions on domestic supply or anti-competitive distribution practices.

According to the FCCPC, all major cement manufacturers provided records to its investigators except one.

Publicly available estimates indicate that three major companies control more than 90 per cent of Nigeria’s installed cement production capacity, a market structure that the Commission said warranted closer scrutiny.

The FCCPC has therefore issued Notices of Commencement of Investigation and Summons to Produce to key industry players.

The companies are required to submit information and records covering their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.

Bello: FCCPC Not Targeting Legitimate Business Decisions

The FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because of the strategic importance of cement to the Nigerian economy and its direct impact on consumers.

“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 said.

He stressed that the Commission’s intervention was not intended to dictate how businesses operate or control legitimate commercial decisions.

“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that,” he said.

Bello said the FCCPC’s responsibility was to ensure that prices, output and other market outcomes were driven by genuine competition rather than unlawful practices capable of restricting competition.

He added that the Commission would continue to examine the available evidence before reaching a final determination on the conduct of companies operating in Nigeria’s cement market.