FCCPC FLAGS POSSIBLE CEMENT PRICE MANIPULATION IN NIGERIA

← Back to News

More Stories

World

ABUJA – The Federal Competition and Consumer Protection Commission, FCCPC, has flagged possible manipulation of cement prices in the Nigerian market following a three-month industry-wide investigation.

In a release issued on Tuesday, August 18, 2026, the Commission said the preliminary findings came from a 40-page field report compiled by its Anticompetitive Practices Department. The investigation was triggered by widespread public complaints over the high cost of cement, a key material in Nigeria’s construction industry.

The FCCPC raised concerns over Nigeria’s comparatively high retail cement prices despite the country’s large limestone deposits, strong domestic production capacity, and reported surplus installed capacity relative to local consumption.

According to the Commission, all major cement manufacturers cooperated by providing their records except one. Publicly available data shows that three major companies account for more than 90 percent of installed production capacity in the country.

As part of the study, the Commission compared Nigeria with markets in Kenya, Tanzania, Togo, South Africa, Egypt, Morocco and Algeria. In Kenya, a bag sells for $5.40 or about N7,344, while in Tanzania it sells for $4.80 or about N6,528. In Togo, which has no limestone deposits, a bag sells for $6.75 or about N9,180.

In Nigeria, market intelligence reviewed by the FCCPC shows prices rose sharply in 2026. A 50kg bag that sold for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year. By July, some parts of the country reported prices between N13,000 and N15,000.

The Commission noted that Nigeria has installed cement production capacity of 60 to 65 million metric tonnes annually, while domestic consumption is estimated at 25 to 30 million metric tonnes. Nigeria is also a net exporter. The FCCPC said it is concerned that this excess capacity has not led to lower domestic prices as expected in a competitive market.

Industry players cited energy costs, Naira depreciation, imported machinery, and logistics as factors driving prices. The Commission said it is testing these claims against verified cost and production data. It has now issued Notices of Investigation and Summons to key players to provide records on pricing, capacity utilisation, and exports.

FCCPC Executive Vice Chairman, Mr. Tunji Bello, said the investigation is to determine whether prices reflect legitimate costs or evidence of coordinated conduct and abuse of market power. He stressed that the goal is to protect the competitive process so that consumers benefit from fair prices.

← Back to News