The Federal Competition and Consumer Protection Commission (FCCPC) says it is investigating possible manipulation of cement prices in the Nigerian market amid continued increases in the cost of the building material.
The commission disclosed this in a statement by its Director of Corporate Affairs, Mr Ondaje Ijagwu, on Wednesday in Lagos.
According to the statement, the probe followed preliminary findings from a three-month cross-border investigation into rising cement prices and prevailing market conditions.
The commission noted that Nigeria had installed cement production capacity of more than 60 million metric tonnes annually, against estimated domestic consumption of between 25 million and 30 million metric tonnes.
It added that the country also exported cement to neighbouring markets.
In spite of the substantial production capacity, the FCCPC observed that cement prices had continued to rise without the expected downward pressure that increased supply would ordinarily create.
The commission reported that a 50kg bag of cement sold for between N9,300 and N9,700 in January but increased to between N10,500 and N13,000 by mid-2026.
By July, prices had climbed between N13,000 and N15,000 in some parts of the country, it noted.
The investigation, according to the FCCPC, was prompted by widespread complaints over the high cost of cement, a major input in Nigeria’s construction industry.
It revealed that three major cement manufacturers accounted for more than 90 per cent of the country’s installed production capacity.
The commission further disclosed that all major cement manufacturers had cooperated with the investigation by providing relevant records, except one company.
To provide a basis for comparison, the FCCPC examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.
The review covered limestone availability, population, production capacity, consumption levels and retail prices across the selected markets.
The commission found that cement sold for about N7,344 per 50kg bag in Kenya and N6,528 in Tanzania, while Togo, which has no limestone deposits, recorded a price of about N9,180 per bag.
Industry participants attributed the rising prices to factors including energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics, the FCCPC stated.
However, investigators were testing those explanations against verified information on production costs, pricing and prevailing market conditions.
The commission maintained that its preliminary findings provided sufficient grounds for the investigation to continue.
It explained that the probe would determine whether prevailing prices were driven by legitimate costs or possible anti-competitive conduct.
The FCCPC will also examine possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.
As part of the process, the commission has issued notices of commencement of investigation and summonses to key players in the cement industry.
The affected companies are required to provide information on pricing methods, production, capacity utilisation, exports and relevant commercial relationships.
Mr Tunji Bello, Executive Vice Chairman of FCCPC, said the investigation reflected the commission’s responsibility to scrutinise markets with significant implications for consumers and the wider economy.
“Cement occupies a strategic place in the Nigerian economy,” Bello said.
He explained that cement prices had direct implications for the cost of building homes, developing commercial properties, delivering public infrastructure and conducting business.
Bello stressed that the investigation was not intended to dictate legitimate commercial decisions or prevent businesses from earning reasonable returns.
“Competition law does not prevent that. Its purpose is to protect the competitive process,” he said.
According to him, prices, output and other market outcomes should be determined by genuine competition rather than unlawful conduct.
The FCCPC emphasised that the investigation was still ongoing and that its preliminary findings did not amount to a final determination of wrongdoing.
