FCCPC Probes Cement Makers Over Possible Price Manipulation as Prices Hit ₦15,000

FCCPC Investigates Cement Prices Amid Rising Construction Costs

The Federal Competition and Consumer Protection Commission has opened an investigation into possible price manipulation and anti-competitive practices in Nigeria’s cement market after preliminary findings from a three-month industry-wide study raised concerns over the sharp rise in cement prices.

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The investigation comes as the price of a 50kg bag of cement reportedly increased from between ₦9,300 and ₦9,700 in January 2026 to as high as ₦15,000 in some parts of the country by July, despite Nigeria’s substantial limestone reserves and cement production capacity exceeding estimated domestic consumption.

FCCPC launches investigation into cement pricing

The FCCPC said its Anticompetitive Practices Department conducted a three-month cross-border study in response to widespread complaints about the rising cost of cement.

The study examined Nigeria's market alongside cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. The commission assessed factors including limestone availability, population, production capacity, consumption and retail prices.

According to the FCCPC, preliminary findings provided sufficient grounds to investigate whether current cement prices reflect legitimate production and market costs or whether coordinated conduct or other anti-competitive practices may be influencing the market.

The commission stressed that the investigation remains ongoing and that its preliminary findings do not amount to a final determination against any manufacturer.

Cement prices rise despite surplus production capacity

One of the major issues identified by the commission is the gap between Nigeria's production capacity and domestic cement consumption.

The FCCPC said Nigeria has installed cement production capacity of between 60 million and 65 million metric tonnes annually, while estimated domestic consumption stands at about 25 million to 30 million metric tonnes. Nigeria also exports cement to neighbouring markets.

The commission said this level of excess capacity would ordinarily be expected to place downward pressure on prices in a competitive market.

Instead, market intelligence reviewed by the agency showed that cement prices continued to rise sharply during the first half of 2026.

A 50kg bag reportedly sold for between ₦9,300 and ₦9,700 in January before rising to between ₦10,500 and ₦13,000 by mid-year. By July, prices ranging from ₦13,000 to ₦15,000 had been reported in some locations.

FCCPC compares Nigerian prices with other African markets

The cross-border review also found lower cement prices in several African markets.

According to figures cited by the commission, a 50kg bag sold for about $5.40, equivalent to ₦7,344, in Kenya; about $4.80, or ₦6,528, in Tanzania; and about $6.75, or ₦9,180, in Togo.

The comparison attracted particular attention because Nigeria has significant limestone deposits, while the FCCPC noted that Togo does not have limestone deposits.

The commission is now examining why Nigeria's domestic cement prices remain significantly higher despite local raw materials, substantial production capacity and reported excess supply.

Manufacturers cite energy, exchange rate and logistics costs

Industry participants have identified several factors contributing to higher cement prices.

According to the FCCPC, these include energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics expenses.

The commission said it is testing these explanations against verified information on production costs, pricing methodologies, capacity utilisation and wider market conditions.

This distinction will be central to the investigation. Higher production costs can legitimately affect prices, but the FCCPC is examining whether those costs fully explain prevailing prices or whether other market practices have restricted competition.

Key cement players asked to provide records

The FCCPC said it has issued Notices of Commencement of Investigation and summonses to key players in the cement industry.

The companies will be required to provide information and records relating to their pricing methodologies, production levels, capacity utilisation, exports and relevant commercial relationships.

The investigation will consider whether there is evidence of coordinated conduct, abuse of market power, restrictions on domestic supply or anti-competitive distribution practices.

According to the commission, three major undertakings account for more than 90% of Nigeria's installed cement production capacity, making competition within the sector a significant issue for regulators and consumers.

Why cement prices matter to housing delivery

The outcome of the investigation could have major implications for Nigeria's housing and construction sectors.

Cement is one of the most important inputs in residential construction. Sustained price increases raise the cost of building homes and can force developers to increase selling prices, delay projects or reduce the number of units they can deliver.

Higher cement costs also affect the viability of affordable housing programmes, where developers and government agencies have limited room to absorb additional expenses.

For prospective homeowners, rising construction costs can translate into more expensive properties and higher costs for self-build projects.

The issue also extends beyond housing. Cement prices influence the cost of roads, bridges, drainage systems and other public infrastructure required to support urban development.

Construction sector faces wider cost pressures

Cement prices are only one part of the broader cost challenge facing Nigeria's construction industry.

Developers also contend with rising prices for steel and other building materials, high energy costs, logistics expenses and financing costs.

The FCCPC investigation therefore comes at a critical time for the housing sector, particularly as governments and private developers seek to expand housing supply.

A reduction in unjustified input costs could improve project viability and support more competitive housing prices. However, the investigation must first establish whether any unlawful conduct has occurred.

FCCPC says probe is not about fixing prices

The FCCPC said its intervention does not amount to an attempt to dictate commercial decisions or impose prices on manufacturers.

According to the commission, the objective is to determine whether the cement market is functioning competitively and whether consumers are receiving the benefits expected from effective competition.

The investigation will therefore focus on market conduct rather than simply whether cement prices are high.

This distinction is important because the FCCPC must determine whether prevailing prices can be explained by genuine production costs and market conditions or whether they result from conduct that restricts competition.

Outlook

The FCCPC's investigation has placed Nigeria's cement industry under renewed regulatory scrutiny at a time when construction costs remain a major obstacle to housing affordability and infrastructure delivery.

The commission has not concluded that cement manufacturers manipulated prices. Its preliminary findings have instead triggered a deeper investigation into the factors driving the market.

For the housing sector, the outcome could be significant. If the investigation identifies practices that unlawfully restrict competition, regulatory action could reshape pricing and distribution in one of Nigeria's most important construction industries.

For now, developers, investors, policymakers and homebuyers will be watching closely as the FCCPC examines whether Nigeria's high cement prices reflect genuine cost pressures or a market structure that has failed to deliver the benefits of effective competition.

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