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Cement Prices in Nigeria Higher than Other African Countries, Says FCCPC
The Federal Competition and Consumer Protection Commission has said its preliminary investigation into Nigeria’s cement industry suggests possible manipulation of cement prices, following widespread complaints over the soaring cost of the commodity despite the country’s large production capacity and abundant limestone deposits.
It has also opened an investigation into possible price manipulation in Nigeria’s cement industry after a three-month inquiry raised concerns that prevailing market conditions may not fully explain the cost of the building material.
The preliminary findings followed a cross-border study conducted by the commission’s Anticompetitive Practices Department in response to widespread complaints over the rising cost of cement.
In a statement issued on Tuesday by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, the commission said its investigation compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
An analysis of findings in the FCCPC report showed that the cost of cement in Nigeria is higher than the prices of the same quantity of the commodity in neighbouring African countries.
This, however, came as building sector leaders and economists explained that the factors behind the high cement prices in Nigeria are compounded.
The study examined the availability of limestone, population, production capacity, consumption and retail prices. The statement read, “Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market.
“This is the preliminary summation of the 40-page field reports collated following a three-month cross-border study by the Anticompetitive Practices Department of the Commission, undertaken in response to widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.”
The commission noted that Nigeria has substantial limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, against domestic consumption of about 25 million to 30 million metric tonnes.
Despite the reported excess capacity and Nigeria’s position as a net exporter to neighbouring countries, the commission said domestic prices had continued to rise.
Market intelligence reviewed by the FCCPC showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, rose to between N10,500 and N13,000 by mid-year. By July, prices of between N13,000 and N15,000 were reported in some parts of the country.
The commission also found that cement sold at lower prices in some African markets. In Kenya, where the population is about 58.6 million and cement demand was estimated at 9.3 million metric tonnes in 2025, a bag sold for about $5.40, or N7,344.
In Tanzania, with a population of about 66.3 million and similar cement demand, a bag sold for about $4.80, or N6,528. In Togo, which the commission said has no limestone deposits, cement retailed at about $6.75, or N9,180 per bag.
The FCCPC said the price disparity had raised questions about why Nigeria’s significant production capacity and raw material endowment had not translated into greater downward pressure on prices.
It said industry players had attributed the high prices to energy costs, naira depreciation, imported machinery and spare parts, as well as transportation and logistics expenses.
However, the commission said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.
“Of particular concern to the commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity.
“Information provided by industry participants has identified energy costs, depreciation of the Naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among the factors contributing to cement prices.
“The commission is testing these explanations against verified information on costs, production, pricing and market conditions. However, the weight of preliminary findings provides sufficient grounds for the investigation to continue,” the statement said.
The FCCPC said the preliminary findings provided sufficient grounds to continue the investigation and determine whether cement prices were driven by legitimate costs or by anti-competitive practices.
The probe will examine possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.
Accordingly, the commission has issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector, demanding records on pricing methodologies, production, capacity utilisation, exports and commercial relationships.
“Next is to determine whether prevailing cement prices can be explained 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 contrary to the provisions of the FCCPA,” it added.
Commenting, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary because of cement’s strategic importance to the economy.
“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. When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” Bello said.
He stressed that the investigation was not aimed at dictating how companies should conduct their businesses or limiting legitimate profits.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that. Its purpose is to protect the competitive process, so that prices, output and other market outcomes are determined by genuine competition rather than conduct that unlawfully restricts it,” Bello said.
The investigation comes amid growing pressure on the construction sector, where rising cement prices have increased the cost of housing and infrastructure projects across the country.
OPS, economists react
Building sector leaders and economists explained that the factors behind the high cement prices in Nigeria are compounded; on the one hand, it is largely structural, including transportation of limestone on impassable roads, and on the other hand, it could be influenced by monetary policy, including taxes.
They noted that there is only so much that the FCCPC could do, especially because any government intervention risks could impact free trade.
