FCCPC Investigates Possible Cement Price Manipulation as Nigeria’s Cement Costs Surge

The Federal Competition and Consumer Protection Commission (FCCPC) has launched a deeper investigation into Nigeria’s cement market after preliminary findings raised concerns that the sharp increase in cement prices may not be fully explained by normal market forces.
The commission said the investigation followed a three-month study conducted by its Anticompetitive Practices Department in response to widespread complaints from Nigerians and businesses about the rising cost of cement.
The study compared Nigeria’s cement industry with markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors such as production capacity, limestone availability, consumption, population and retail prices.
FCCPC Questions Rising Cement Prices in Nigeria
According to the commission, Nigeria has significant limestone deposits and an estimated installed cement production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is considerably lower.
Despite the country’s production capacity and its ability to export cement to neighbouring countries, cement prices in the domestic market have continued to rise.
The FCCPC said its market intelligence showed that a 50kg bag of cement that sold for approximately ₦9,300–₦9,700 in January had climbed to about ₦10,500–₦13,000 by mid-year.
By July, prices in some parts of Nigeria reportedly reached between ₦13,000 and ₦15,000 per 50kg bag.
The commission said the continued price increases raised questions about whether market conditions alone could explain the cost of cement in Nigeria.
Cement Cheaper in Some African Countries
As part of its investigation, the FCCPC compared Nigerian cement prices with those in other African markets.
The commission said a 50kg bag reportedly sold for about $5.40 in Kenya, equivalent to approximately ₦7,344 based on the exchange rate used in its study.
In Tanzania, the same quantity reportedly cost around $4.80, or approximately ₦6,528.
In Togo, where the commission noted the absence of domestic limestone deposits, a 50kg bag reportedly sold for about $6.75, equivalent to approximately ₦9,180.
The FCCPC said the comparisons raised concerns over why Nigeria’s substantial mineral resources and production capacity had not translated into lower domestic cement prices.
Manufacturers Cite Rising Production Costs
The commission acknowledged that cement producers have pointed to several factors behind the increase in prices.
These include:
Rising energy costs
Naira depreciation
Higher costs of imported machinery and spare parts
Transportation expenses
Logistics challenges
Other production-related costs
However, the FCCPC said it was examining whether these explanations adequately account for the prices being charged to consumers.
The commission stressed that its investigation would rely on verified information about production costs, capacity utilisation, pricing and other market conditions.
FCCPC Investigates Possible Anti-Competitive Practices
The commission said the investigation would determine whether cement prices are the result of legitimate business costs or potentially unlawful market practices.
Areas being examined include possible:
Price coordination
Abuse of market power
Restriction of domestic supply
Anti-competitive distribution practices
Other conduct prohibited under Nigeria’s competition laws
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to major industry participants.
The companies have been asked to provide information concerning their pricing methods, production levels, capacity utilisation, exports and commercial relationships.
FCCPC: Investigation Is Not About Controlling Profits
FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello said cement was too important to Nigeria’s economy for concerns surrounding its pricing to be ignored.
He explained that cement prices have a direct impact on housing construction, commercial developments, public infrastructure and the wider cost of doing business.
Bello stressed that the commission was not seeking to prevent companies from making legitimate profits.
Instead, he said the objective was to ensure that competition remained fair and that prices and supply were determined by genuine market forces rather than unlawful practices.
Rising Cement Prices Put Pressure on Construction Sector
The investigation comes at a time when Nigeria’s construction and housing sectors are facing increasing costs.
Cement is one of the major materials used in building homes, roads, commercial properties and other infrastructure. Continued increases in its price therefore have wider implications for developers, contractors and ordinary Nigerians seeking to build or renovate homes.
The FCCPC said its investigation would continue as it seeks to establish the factors responsible for the current cement pricing situation and determine whether any anti-competitive practices are taking place.