•Bags of cement
Cement manufacturers are under the searchlight of the Federal Competition and Consumer Protection Commission (FCCPC) over rooftop prices of cement, the agency has confirmed.
It said the probe followed an extensive industry-wide investigation that suggested possible manipulation of product prices in the Nigerian market, reports The Nation.
The FCCPC stated that findings from a three-month cross-border study by its Anti-competitive Practices Department (ACP), undertaken in response to widespread public complaints over the high cost of cement, provided reasonable ground for probe of the cement manufacturers.
According to the commission, subsequent to the findings, it has issued “Notices of Commencement of Investigation and Summons to Producer” to the key players in the sector.
With the summon, the companies are required to provide information and records relating to, among other matters, their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.
Three companies account for more than 90 per cent of Nigeria’s cement production. They are: Dangote Cement Plc, HMB Nigeria Plc, formerly known as Lafarge Africa Plc. and BUA Cement Plc.
FCCPC stated that its actions were sequel to concerns raised over the comparatively high retail price of cement in the local market compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.
The Commission explained that, beyond Nigeria, its investigations extended to markets in sub-Saharan Africa like Kenya, Tanzania and South Africa as well as Egypt, Morocco and Algeria, using metrics such as availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption.
The Commission’s survey indicated that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption is approximately 25 to 30 million metric tonnes.
Nigeria is also a net exporter of cement to neighbouring markets, a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, stated.
The FCCPC statement reads: “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.”
Mr. Tunji Bello said the investigation reflected the commission’s responsibility to examine market conditions that have significant consequences for consumers and the wider economy.
He said: “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.”
He explained that the scrutiny is not intended to dictate the commercial decisions of businesses, rather, it is to determine whether the market is functioning competitively and whether consumers are receiving the benefits that effective competition should provide.
Bello said: “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. That distinction is important to the work we are undertaking”.
The FCCPC spokesman provided additional details on the findings from the ACP investigation.
He said: “For instance, Kenya with 58.6 million population, 76 per cent lower than Nigeria’s population, had domestic cement demand of approximately 9.3m metric tonne per annum (MTPA) in 2025. Retail price in Nairobi is $5.40 or N7,344. Kenya is endowed with limestone.
“Tanzania, with population of 66.3 million, 72 per cent lower than Nigeria’s population, had domestic cement demand of 9.3m MTPA by 2025 with a bag of cement selling for $4.80 or N6,528.
“In Togo, which does not have limestone deposit, a bag of cement sells for $6.75 or N9,180.
“However, in Nigeria, with its huge limestone deposit and installed capacity, market intelligence reviewed by the commission showed that the retail price of a 50kg bag of cement rose significantly during the first half of 2026.
“A cement bag selling for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year and by July, prices had risen to between N13,000 and N15,000 in some parts of the country.”
The Commission noted that information provided by industry participants had 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.
It said: “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.
“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.”
