FCCPC probes cement price surge, possible anti-competitive practices
The Federal Competition and Consumer Protection Commission (FCCPC) has commenced an investigation into possible manipulation of cement prices in Nigeria, following widespread complaints over the rising cost of the building material.
The commission disclosed this in a statement on Tuesday, saying preliminary findings from a three-month industry-wide study indicated that prevailing cement prices might not be fully explained by production costs and other market conditions.
The investigation was conducted by the FCCPC’s Anticompetitive Practices Department and included a review of cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo. The commission also examined Nigeria’s production capacity, domestic consumption, limestone availability and other market indicators.
According to the FCCPC, Nigeria has an installed cement production capacity of more than 60 million to 65 million metric tonnes annually, while domestic consumption is estimated at between 25 million and 30 million metric tonnes. It added that Nigeria is also a net exporter of cement to neighbouring countries.
Despite the excess production capacity, the commission said cement prices had continued to rise. A 50kg bag reportedly sold for between N9,300 and N9,700 in January 2026, rising to between N10,500 and N13,000 by mid-year and reaching N13,000 to N15,000 in some parts of the country by July.
The Executive Vice Chairman/Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary to establish why cement prices remained high despite Nigeria’s substantial production capacity and domestic resources.
“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.
The FCCPC said it would determine whether the high prices were justified by legitimate costs, including energy, transportation and the depreciation of the naira, or whether they resulted from coordinated conduct, abuse of market power, supply restrictions or other anti-competitive practices. It has consequently issued notices and summonses to key industry players to provide records on pricing, production, capacity utilisation, exports and commercial relationships.
