By By Elizabeth Ugbo
The Federal Competition and Consumer Protection Commission (FCCPC) has opened an investigation into possible cement price manipulation in Nigeria. The commission launched the probe after a three-month study found major price differences across African markets. The investigation targets key cement producers and distributors amid rising construction costs and public complaints. The FCCPC said it wants to determine whether legitimate costs or anti-competitive practices drive the prices.
FCCPC Raises Concerns Over Cement Prices
The FCCPC said its preliminary findings suggest possible manipulation within Nigeria’s cement industry.
Its Anticompetitive Practices Department conducted the study following widespread complaints from consumers and businesses.
The 40-page field report compared Nigeria’s cement market with several African countries.
These countries include Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The commission examined limestone availability, population, production capacity, consumption and retail prices.
According to the FCCPC, Nigeria has substantial limestone deposits and significant cement production capacity.
The country has an installed production capacity of about 60 million to 65 million metric tonnes yearly.
However, domestic consumption stands at roughly 25 million to 30 million metric tonnes.
Therefore, Nigeria has considerable excess production capacity.
Despite this advantage, cement prices have continued to increase across the country.
Cement Prices Rise Sharply
The FCCPC’s market intelligence showed a significant increase in cement prices this year.
A 50kg bag sold for about N9,300 to N9,700 in January.
By mid-year, prices had climbed to between N10,500 and N13,000.
Furthermore, some markets recorded prices between N13,000 and N15,000 by July.
The commission said the trend raises questions about Nigeria’s cement pricing structure.
It also noted that Nigeria remains a net exporter of cement to some neighbouring countries.
Yet, domestic consumers continue to face higher prices.
Nigeria Records Higher Prices Than Some African Markets
The FCCPC compared Nigeria’s prices with those in other African countries.
In Kenya, a 50kg bag reportedly sold for about $5.40, equivalent to N7,344.
Kenya has a population of about 58.6 million people.
Its cement demand stood at an estimated 9.3 million metric tonnes in 2025.
Meanwhile, Tanzania recorded a price of about $4.80 per bag.
That figure equals roughly N6,528 based on the commission’s conversion.
Tanzania has a population of about 66.3 million people.
In Togo, cement sold for about $6.75 per bag, or approximately N9,180.
The FCCPC noted that Togo does not have significant limestone deposits.
Consequently, the price differences have increased concerns about Nigeria’s domestic market.
FCCPC Tests Industry Explanations
Cement producers have cited several factors behind the rising prices.
These include high energy costs and naira depreciation.
They also include imported machinery, spare parts, transportation and logistics expenses.
However, the FCCPC said it will test these explanations against verified industry data.
The commission will examine production costs, pricing, capacity utilisation and other market conditions.
It will also investigate possible coordinated conduct and abuse of market power.
Furthermore, the probe will examine restrictions on domestic supply and distribution practices.
The commission has already issued Notices of Commencement of Investigation to major industry players.
It also issued Summons to Produce requiring relevant industry records.
The documents requested cover pricing methods, production and capacity utilisation.
They also include export records and commercial relationships.
FCCPC Explains Reason for Cement Price Investigation
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, explained the importance of the probe.
He said cement plays a strategic role in Nigeria’s economy.
According to him, cement prices affect housing and commercial property development.
They also influence public infrastructure projects and the broader cost of doing business.
Bello stressed that the investigation would not prevent legitimate business profits.
He said competition laws allow companies to make genuine commercial decisions.
However, businesses must not unlawfully restrict competition.
The FCCPC therefore wants market forces to determine prices and output.
Construction Sector Leaders Question High Cement Prices
Construction industry leaders have also questioned the reasons behind the price increases.
Lagos Chamber of Commerce and Industry Construction Group Chairman, Soji Adeniji, supported concerns over Nigeria’s high cement prices.
He said a recent experience involving cement purchases for a Canadian project raised similar questions.
According to Adeniji, imported cement from Turkey appeared more price-friendly than Nigerian cement.
He also said cement from some East African markets could prove cheaper.
However, Adeniji noted that several factors could influence the final price.
These include transportation, production infrastructure and distribution costs.
He also raised concerns about possible taxation pressures.
Adeniji said the government should examine the entire production chain.
That process should cover limestone extraction, manufacturing, transportation and distribution.
Experts Blame Supply Challenges and Rising Costs
Adeniji also questioned claims that rainfall affected limestone production.
He said recent weather conditions did not appear sufficient to explain the current supply situation.
Meanwhile, economists said cement prices could reflect a combination of structural and economic factors.
Professor Akpan Ekpo of the University of Uyo identified supply as a possible major issue.
He said demand may currently exceed available supply in some parts of the country.
Ekpo urged the government to support businesses seeking financing within the cement sector.
According to him, improved access to finance could strengthen supply and reduce prices.
Experts Recommend Alternatives to Cement
Some construction experts have also called for greater investment in cement alternatives.
Samuel Shonibare, a Nigerian Institute of Building member and Yaba College of Technology researcher, made the proposal.
He said researchers should explore materials that can partially replace cement in concrete.
Shonibare cited rice husks as one possible alternative material.
He argued that reducing cement usage could lower construction costs.
He also urged construction stakeholders to support research into alternative building materials.
According to him, reduced demand for cement could eventually encourage producers to lower prices.
Muda Yusuf Calls for Deeper Cement Market Investigation
Meanwhile, Centre for the Promotion of Private Enterprise Chief Executive Officer, Dr Muda Yusuf, called for deeper research.
He said the FCCPC should obtain more detailed information from cement producers and distributors.
Yusuf also urged the commission to examine cement production costs in other countries.
He said such information would provide a stronger basis for comparison.
The analysis should cover production costs, taxes, energy expenses and logistics.
Yusuf said these factors would help explain why cement prices differ between countries.
FCCPC Investigation Could Shape Cement Market Reforms
The ongoing FCCPC investigation could have major implications for Nigeria’s construction sector.
A clear finding could help determine whether market forces justify current cement prices.
It could also expose any practices that restrict competition or limit supply.
However, experts warn against measures that could undermine legitimate business activity.
The government may instead need to improve transportation networks and energy supply.
It could also support domestic manufacturing and increase access to business financing.
At the same time, more research into alternative construction materials could reduce pressure on cement demand.
For now, the FCCPC says its investigation will establish whether legitimate costs explain the high prices.
It will also determine whether anti-competitive practices contribute to the rising cost of cement.
