The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a fresh investigation into Nigeria’s cement market following preliminary findings suggesting possible price manipulation despite the country’s substantial production capacity and reported excess supply.
The commission said its three-month cross-border investigation had established sufficient grounds to examine whether the prevailing price of cement was driven by legitimate production and market costs or possible anti-competitive practices among major industry players.
The development was disclosed in a statement by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, in Abuja.
The investigation is being conducted by the commission’s Anticompetitive Practices Department and is based on a 40-page industry-wide field report covering Nigeria and selected cement markets across Sub-Saharan and North Africa.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the commission was acting within its mandate to examine market conditions with significant implications for consumers and the wider economy.
Bello noted that cement plays a critical role in housing, commercial development and public infrastructure, adding that persistent concerns over its price could not be ignored.
He stressed that the investigation was not aimed at dictating how cement manufacturers conduct their businesses but at determining whether the market was operating competitively.
According to the commission, Nigeria has an installed cement production capacity of about 65 million metric tonnes annually, compared with estimated domestic consumption of between 25 million and 30 million metric tonnes.
Despite the reported excess capacity, the commission observed that cement prices had continued to rise instead of falling as would ordinarily be expected in a competitive market.
FCCPC said a 50kg bag of cement that sold for between ₦9,300 and ₦9,700 in January 2026 had increased to between ₦10,500 and ₦13,000 by mid-year, with prices reaching between ₦13,000 and ₦15,000 in some parts of the country by July.
The commission also compared Nigeria’s cement market with those of Kenya, Tanzania, Togo, South Africa, Egypt, Morocco and Algeria.
While industry stakeholders cited rising energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses as factors behind the price increases, FCCPC said it was verifying these explanations against actual production costs, capacity utilisation and market conditions.
The commission clarified that its preliminary findings did not constitute a final determination of wrongdoing but provided sufficient grounds for further investigation.
The next phase will determine whether current cement prices are justified by legitimate costs or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other violations of the Federal Competition and Consumer Protection Act.
FCCPC has consequently issued notices of commencement of investigation and summonses requiring key cement manufacturers to provide records relating to pricing methods, production, capacity utilisation, exports and relevant commercial relationships.
The commission said all major cement manufacturers had cooperated by making their records available, except one.
It added that publicly available estimates indicate that three major companies control more than 90 per cent of Nigeria’s installed cement production capacity, further highlighting the need to examine how competition operates within the industry.
