The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the high cost of cement in Nigeria, saying Nigerians currently pay more for the building material than consumers in several other African countries.
The commission has consequently commenced an investigation into possible price manipulation in Nigeria’s cement industry, following widespread complaints about rising cement prices despite the country’s large production capacity and abundant limestone deposits.
The FCCPC disclosed this in a statement issued on Tuesday by its Director of Corporate Affairs, Ondaje Ijagwu.
According to the commission, its preliminary findings followed a three-month cross-border study conducted by its Anticompetitive Practices Department.
The study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors including limestone availability, population, production capacity, consumption and retail prices.
Cement Prices Higher in Nigeria
The FCCPC said a 50-kilogramme 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, the commission said prices of between N13,000 and N15,000 were recorded in some parts of the country.
The commission noted that the situation was concerning because Nigeria has an estimated installed cement production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is estimated at about 25 million to 30 million metric tonnes.
Despite the apparent excess capacity and Nigeria’s status as a net exporter of cement to neighbouring countries, domestic prices have continued to rise.
The FCCPC said its findings showed that cement was cheaper in some other African markets.
In Kenya, a 50kg bag was reported to sell for about $5.40, equivalent to approximately N7,344, while the same quantity sold for about $4.80, or N6,528, in Tanzania.
In Togo, where the FCCPC said there are no limestone deposits, cement reportedly retailed for about $6.75, or N9,180, per bag.
FCCPC Probes Possible Price Manipulation
The commission said the price differences raised questions about why Nigeria’s substantial production capacity and access to raw materials had not translated into lower cement prices.
The FCCPC said industry operators had attributed the high prices to factors including energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics.
However, the commission said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.
The investigation will examine possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the industry.
The companies are expected to provide information relating to pricing methods, production levels, capacity utilisation, exports and commercial relationships.
FCCPC Explains Reason for Investigation
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary because of the strategic importance of cement to Nigeria’s economy.
Bello said cement prices directly affect the cost of housing, commercial property development, public infrastructure and doing business.
He stressed that the investigation was not designed to prevent cement manufacturers from making legitimate profits.
According to him, the objective is to ensure that prices, output and other market outcomes are determined by genuine competition rather than unlawful practices that restrict competition.
Experts Explain Rising Cement Prices
Business leaders and economists have offered several explanations for the high cost of cement in Nigeria.
Chairman of the Lagos Chamber of Commerce and Industry Construction Group, Soji Adeniji, said his experience with an international construction project supported concerns that cement prices in Nigeria are relatively high.
He identified factors including logistics, production infrastructure, taxation and possible challenges along the cement supply chain.
Professor of Economics and Public Policy at the University of Uyo, Akpan Ekpo, suggested that supply constraints could also be contributing to the problem.
He urged the government to examine the sector and improve access to finance for businesses involved in cement production and distribution.
Meanwhile, a researcher at Yaba College of Technology and member of the Nigerian Institute of Building, Samuel Shonibare, called for greater investment in alternatives to cement.
Shonibare said research into materials that could partially replace cement in concrete production could help reduce demand and potentially lower prices.
He cited rice husks as one of the materials being studied as a possible partial replacement for cement.
The Chief Executive Officer of the Centre for Promotion of Private Enterprise, Muda Yusuf, however, called for a more detailed investigation.
Yusuf said the FCCPC should examine the cost structures of cement producers and suppliers in other countries, including taxes, energy, logistics and production costs, to provide a more comprehensive basis for comparison.
What Happens Next?
The FCCPC said its investigation will determine whether the current price of cement in Nigeria can be justified by legitimate production and operating costs or whether anti-competitive practices are contributing to the high prices.
The outcome of the investigation could have significant implications for cement manufacturers, distributors, the construction industry and Nigerian consumers, particularly as high building costs continue to affect housing and infrastructure development across the country.
