The Federal Competition and Consumer Protection Commission (FCCPC) has launched a fresh investigation into cement pricing in Nigeria after a three-month cross-border study found that domestic prices remain far higher than in several peer African countries, despite Nigeria’s abundant limestone deposits and large production capacity.
The probe, carried out by the FCCPC’s Anticompetitive Practices Department, followed widespread public complaints over the rising cost of cement. Announcing the findings on Tuesday, the commission’s Director of Corporate Affairs, Ondaje Ijagwu, said preliminary results showed that current price levels could not be fully explained by prevailing market conditions.
The study benchmarked Nigeria against Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, weighing factors such as limestone reserves, population size, installed capacity, consumption levels and retail prices.
According to the FCCPC, Nigeria’s installed cement production capacity stands at between 60 million and 65 million metric tonnes annually, well above domestic consumption of 25 million to 30 million tonnes — positioning the country as a net exporter to its neighbours. Yet prices have continued to climb rather than fall.
The commission said a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, had climbed to between N10,500 and N13,000 by mid-year, and further to between N13,000 and N15,000 in parts of the country by July.
That trajectory stands in sharp contrast to Nigeria’s regional peers. In Kenya, with a population of about 58.6 million and 2025 cement demand of 9.3 million metric tonnes, a 50kg bag sold for roughly $5.40 (N7,344). In Tanzania, with a comparable population of 66.3 million and similar demand levels, the same bag went for about $4.80 (N6,528). Even Togo, which has no limestone deposits of its own, sold a bag for about $6.75 (N9,180) — still cheaper than Nigeria’s rates.
The FCCPC said the disparity raises pointed questions about why Nigeria’s superior production capacity and raw material access have failed to translate into cheaper cement for consumers.
Industry operators have blamed the price surge on rising energy costs, naira depreciation, the cost of imported machinery and spare parts, and logistics expenses. But the commission said it is independently verifying those claims against actual data on production costs, pricing, capacity utilisation and other market conditions.
“Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity,” the FCCPC said in its statement.
The commission said the investigation would determine whether cement prices are being driven by legitimate cost factors or by conduct that breaches Nigeria’s competition laws. The scope of the probe includes possible coordinated conduct among manufacturers, abuse of market power, deliberate restriction of domestic supply, anti-competitive distribution practices, and other potential violations of the Federal Competition and Consumer Protection Act.
The FCCPC has already issued Notices of Commencement of Investigation and Summons to Produce to major industry players, compelling them to submit records on pricing methodology, production levels, capacity utilisation, exports and commercial relationships.
Speaking on the probe, the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the exercise was driven by cement’s outsized role in the economy.
“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 clarified that the investigation was not designed to interfere with how cement manufacturers run their operations or to stop them from earning legitimate profit, noting that competition law permits businesses to pursue commercial returns while prohibiting conduct that unlawfully suppresses competition.
