The Federal Competition and Consumer Protection Commission (FCCPC) has launched a fresh investigation into Nigeria’s cement market over concerns that prices may not be fully explained by production costs and prevailing market conditions.

The three-month cross-border review found sufficient grounds for the commission to examine whether the sharp increase in cement prices reflects legitimate commercial costs or possible anti-competitive conduct among major industry players.

The investigation comes amid persistent complaints over the cost of cement, which has risen significantly despite Nigeria having substantial installed production capacity and reported excess supply.

The FCCPC disclosed the development in a statement issued in Abuja by its Director of Corporate Affairs, Ondaje Ijagwu.

FCCPC Targets Competition, Not Commercial Decisions

The commission’s Anticompetitive Practices Department is leading the investigation, based on a 40-page industry-wide field report covering Nigeria and selected cement markets in Sub-Saharan and North Africa.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the regulator’s intervention was aimed at establishing whether competition in the cement industry was functioning effectively, rather than controlling the prices or commercial decisions of manufacturers.

“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 added that businesses remained entitled to make legitimate commercial decisions and earn returns on their investments, stressing that competition law does not prevent companies from doing so.

According to Bello, the commission’s responsibility is to protect the competitive process and ensure that market outcomes—including prices and supply—are determined by genuine competition rather than unlawful restrictions.

“That distinction is important to the work we are undertaking,” he said.

Nigeria Has 65 Million Tonnes of Installed Capacity

A central focus of the investigation is the apparent gap between Nigeria’s cement production capacity and domestic consumption.

According to FCCPC estimates, Nigeria has installed cement production capacity of about 65 million metric tonnes per year, compared with estimated domestic consumption of between 25 million and 30 million tonnes.

Nigeria is also a net exporter of cement to neighbouring markets.

The commission said the level of excess capacity would ordinarily be expected to create competitive pressure on domestic prices, but that such pressure has not been evident.

Instead, cement prices have continued to rise sharply in 2026.

FCCPC market intelligence showed that a 50kg bag of cement sold for between N9,300 and N9,700 in January, before increasing to between N10,500 and N13,000 by mid-year.

By July, prices of between N13,000 and N15,000 per 50kg bag were reported in some parts of the country.

The price increases have raised questions about the relationship between production costs, capacity utilisation, supply and retail prices in Africa’s largest cement market.

FCCPC Compares Nigeria with African Markets

The commission also examined cement markets in Kenya, Tanzania, Togo, South Africa, Egypt, Morocco and Algeria to establish how factors such as limestone availability, population, production capacity and consumption affect prices.

In Kenya, with a population of about 58.6 million, domestic cement demand was estimated at 9.3 million metric tonnes in 2025. FCCPC said a 50kg bag sold for approximately $5.40, equivalent to about N7,344.

Tanzania recorded similar cement demand of about 9.3 million tonnes in 2025, while retail prices were estimated at about $4.80, or N6,528, according to the commission.

In Togo, which does not have domestic limestone deposits, the commission put the price of a 50kg bag at about $6.75, equivalent to approximately N9,180.

The comparisons are part of FCCPC’s effort to determine whether Nigeria’s cement prices are consistent with underlying market fundamentals.

Manufacturers Cite Energy, Logistics and Naira Depreciation

Cement industry participants have pointed to several factors behind the increase in prices.

These include rising energy costs, the depreciation of the naira, higher costs of imported machinery and spare parts, as well as transportation and logistics expenses.

FCCPC said it was testing these explanations against verified information on production costs, capacity utilisation, pricing practices and broader market conditions.

The commission stressed that its preliminary findings do not constitute a determination of wrongdoing.

Rather, they provide sufficient grounds for a deeper investigation into the structure and conduct of the market.

Major Cement Producers Face Investigation

The next phase of the probe will examine whether prevailing cement prices can be justified by legitimate costs or whether there is evidence of potentially unlawful market conduct.

Areas under scrutiny include possible coordinated pricing, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices and other conduct prohibited under Nigeria’s Federal Competition and Consumer Protection Act.

FCCPC has consequently issued notices of commencement of investigation and summonses requiring key cement industry players to produce relevant records.

The companies are expected to provide information covering pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.

The commission said all major cement manufacturers had cooperated by providing records, with the exception of one company.

Publicly available estimates indicate that three major cement producers control more than 90 per cent of Nigeria’s installed cement production capacity, highlighting the importance of the FCCPC investigation for competition and consumer protection.

The outcome of the probe could have significant implications for Nigeria’s construction sector, housing costs, infrastructure development and the broader cost of doing business, particularly if the commission establishes that market practices rather than underlying production costs are contributing materially to elevated cement prices.