FCCPC Flags Possible Cement Price Manipulation in Nigeria Amid Soaring Costs.

By Mohammed Idris shaaba ✔

FCCPC Flags Possible Cement Price Manipulation in Nigeria Amid Soaring Costs.

The Federal Competition and Consumer Protection Commission (FCCPC) has announced preliminary findings indicating possible price manipulation in Nigeria’s cement market, following a three-month investigation triggered by widespread public complaints over rising costs.

In a statement released on Tuesday, August 18, 2026, the commission said its Anticompetitive Practices Department compiled a 40-page field report after examining the domestic market and comparing it with several other African countries, including Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

Nigeria’s retail prices for a 50kg bag of cement climbed sharply in the first half of 2026. Bags that sold for between ₦9,300 and ₦9,700 in January were fetching ₦10,500 to ₦13,000 by mid-year, with reports of ₦13,000 to ₦15,000 in some areas by July.

These levels stand in contrast to lower prices elsewhere on the continent. In Nairobi, Kenya, a bag sold for the equivalent of about ₦7,344, while in Tanzania the figure was around ₦6,528. Even in Togo, which lacks significant limestone deposits, prices were reported near ₦9,180.

The FCCPC highlighted Nigeria’s substantial installed production capacity of more than 60 to 65 million metric tonnes annually against estimated domestic consumption of only 25 to 30 million tonnes. The country is also a net exporter of cement to neighbouring markets. Three major companies account for more than 90 percent of installed capacity.

“Concerns were raised over the comparatively high retail price of cement in Nigeria 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 stated.

Industry participants have cited energy costs, naira depreciation affecting imported machinery and spare parts, and transportation and logistics expenses as drivers of higher prices. The FCCPC said it is testing these explanations against verified data on production costs, pricing and market conditions.

The weight of the preliminary findings has prompted the commission to continue its probe. It is examining whether the elevated prices can be fully explained by legitimate market forces or whether there is evidence of coordinated pricing, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices or other violations of the Federal Competition and Consumer Protection Act.

Formal notices of investigation and summonses to produce records have already been issued to key players in the sector. Companies have been required to submit information on their pricing methodologies, production and capacity utilisation, exports and commercial relationships. Most major manufacturers cooperated by providing records, according to the commission.

FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello emphasised the strategic importance of cement to the Nigerian 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,” he said. “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 stressed that competition scrutiny aims to protect the competitive process rather than dictate commercial decisions. Businesses remain free to earn legitimate returns, provided outcomes are determined by genuine competition.

The investigation remains at a preliminary stage, and no final determination of wrongdoing has been made. Its outcome could influence cement prices, the construction sector and broader building material costs for millions of Nigerians.