FCCPC Uncovers Possible Price Manipulation In Cement Market

The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered indications of possible price manipulation in Nigeria’s cement market following a three-month industry-wide investigation.

The Commission disclosed this in a statement on Tuesday, August 18, 2026, describing the findings as a preliminary summation of 40-page field reports compiled by its Anticompetitive Practices Department.

The investigation was launched in response to widespread complaints over the rising cost of cement and concerns that the price of the building material in Nigeria is comparatively high despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus capacity.

According to the FCCPC, all major cement manufacturers in Nigeria cooperated with the investigation by making their records available, except one. Publicly available estimates indicate that three major companies account for more than 90 per cent of the country’s installed cement production capacity.

The investigation compared Nigeria’s cement market with markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors including limestone availability, population, production capacity and domestic consumption.

The Commission noted that a 50kg bag of cement sold for about $5.40 (N7,344) in Nairobi, Kenya, and $4.80 (N6,528) in Tanzania, while the price in Togo, which does not have limestone deposits, was about $6.75 (N9,180).

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In Nigeria, however, the FCCPC said market intelligence showed that the retail price of cement increased significantly during the first half of 2026.

A 50kg bag reportedly sold for between N9,300 and N9,700 in January, but rose to between N10,500 and N13,000 by mid-year. By July, prices ranging from N13,000 to N15,000 were reported in some parts of the country.

The Commission said Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, compared with estimated domestic consumption of approximately 25 to 30 million metric tonnes.

It added that Nigeria is also a net exporter of cement to neighbouring countries.

The FCCPC said it was particularly concerned that the country’s substantial production capacity had not translated into lower domestic prices, as would ordinarily be expected in a competitive market with significant excess capacity.

Industry participants identified energy costs, naira depreciation and its impact on imported machinery and spare parts, as well as transportation and logistics costs, as some of the factors responsible for the high price of cement.

However, the Commission said it was testing those explanations against verified information on production costs, pricing and market conditions.

It said the preliminary findings provided sufficient grounds for the investigation to continue to determine whether prevailing cement prices are justified by legitimate costs and market conditions or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct prohibited under the Federal Competition and Consumer Protection Act.

Consequently, the FCCPC said it had issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector.

The companies are expected to provide information and records relating to their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.

The Executive Vice Chairman/Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said the investigation was part of the Commission’s responsibility to examine market conditions with significant consequences for consumers and the wider economy.

Bello said cement occupies a strategic position in Nigeria’s economy because its price affects the cost of building homes, developing commercial properties, delivering public infrastructure and doing business.

He stressed that the Commission’s intervention was not aimed at dictating the commercial decisions of businesses but at determining whether the market was functioning competitively and whether consumers were benefiting from effective competition.

According to him, businesses have the right to make legitimate commercial decisions and earn returns on their investments, while competition law seeks to ensure that prices, output and other market outcomes are determined by genuine competition rather than unlawful practices that restrict competition.

The FCCPC said the investigation is ongoing.