The Federal Competition and Consumer Protection Commission has launched an investigation into major cement manufacturers after its findings pointed to possible price manipulation in Nigeria’s cement market.

According to a statement by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the probe follows an industry-wide investigation that uncovered indications of anti-competitive pricing practices within the sector.

The investigation was prompted by concerns over the relatively high retail price of cement in Nigeria compared with other markets, despite the country’s abundant limestone resources, substantial domestic production capacity and reported surplus installed capacity compared with local demand.

The FCCPC said its findings were based on preliminary field reports from a three-month cross-border study conducted by its Anticompetitive Practices Department (ACP).

The study was launched in response to widespread public complaints about the high cost of cement, a key commodity in Nigeria’s construction industry.

The FCCPC said all major cement manufacturers in Nigeria cooperated with the investigation by providing the Commission with requested records, except one company.

“Publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country.

“The ACP investigations extended to markets in Sub-Saharan Africa like Kenya, Tanzania and South Africa as well as Egypt, Morocco and Algeria.
“Metrics adopted included the availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption,” the statement stated.

The Commission noted that Kenya, with a population of 58.6 million—about 76% lower than Nigeria’s—recorded domestic cement demand of approximately 9.3 million metric tonnes per annum (MTPA) in 2025. Despite its limestone resources, cement retailed for about $5.40 (N7,344) per bag in Nairobi.

“In Tanzania, with a population of 66.3m (72% lower than Nigeria’s) and domestic cement demand is 9.3m MTPA (2025), a bag of cement sells for $4.80 (N6,528).
“In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have a limestone deposit,” the statement added.

By comparison, the FCCPC said its market intelligence showed that the retail price of a 50kg bag of cement in Nigeria increased significantly during the first half of 2026.

“A bag reportedly selling for between N9,300 and N9,700 in January was selling for 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 Commission’s survey indicates that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption is approximately 25 to 30 million metric tonnes. Nigeria is also a net exporter of cement to neighbouring markets,” the Commission added.

The FCCPC said it was particularly concerned that the sector’s substantial production capacity had not translated into lower domestic prices, as would normally be expected in a competitive market with significant excess capacity.

The Commission noted that industry participants had identified several factors driving cement prices, including high energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.

Ijagwu said the Commission was examining these explanations against verified data on production costs, output, pricing and prevailing market conditions.

He added that the strength of the preliminary findings provided sufficient grounds for the investigation to continue.

“Next is to determine 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,” he stated.

Ijagwu disclosed that the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry as part of its ongoing probe.