Cement price hike: FCCPC probes market manipulation, summons producers

The Federal Competition and Consumer Protection Commission (FCCPC) says its investigation into the high cost of cement in the country shows possible manipulation of prices in the market.

The FCCPC also disclosed that it had issued notices of commencement of further investigation and ‘summons to produce’ to key players in the sector.

The commission made this known via a statement issued by its Director of Corporate Affairs, Ondaje Ijagwu, on Tuesday, August 18, 2026.

Ijagwu said the companies would be required to provide information and records relating to, their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships, among other matters.

Ijagwu said the investigations followed widespread public concerns raised over the comparatively high retail price of cement in Nigeria compared with other markets.

Meanwhile, analysing the circumstances that led to the summons by the FCCPC, Ijagwu said the commission’s Anti-Competitive Practices Department (ACP) had embarked on a three-month cross-border study of the sector.

He said findings from the ACP department of the commission indicated that the country had installed cement production capacity of more than 60 million to 65 million metric tonnes annually.

Ijagwu said the commission’s survey indicated that the estimated domestic consumption of cement was approximately 25 million to 30 million metric tonnes.

According to him, Nigeria is also a net exporter of cement to neighbouring markets.

The FCCPC spokesman noted that of particular concern to the commission was that the level of production capacity had not resulted in the downward pressure on domestic prices.

Ijagwu stated: “Publicly available estimates indicate that three major undertakings account for more than 90 percent of installed production capacity in the country.

“The ACP investigations extended to markets in Sub-Saharan Africa like Kenya, Tanzania and South Africa as well as Egypt, Morocco and Algeria.

“Metrics adopted included the availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption.”

He cited the example of Kenya, where the 58.6 million population (76 per cent lower than Nigeria’s) has domestic cement demand of approximately 9.3 million metric tonne per annum) in 2025.

Ijagwu said: “Retail price in Nairobi is 5.40 dollars (N7,344). Kenya is endowed with limestone.

“In Tanzania, with population of 66.3m (72 per cent lower than Nigeria’s) and the domestic cement demand is 9.3m MTPA (2025), a bag of cement sells for 4.80 dollars (N6,528).

“In Togo, a bag sells for $6.75 (N9,180) and Togo does not have limestone.”

Nigeria’s cement prices outpace Kenya, Tanzania, Togo — FCCPC

Ijagwu said the ACP’s report indicated the in spite of Nigeria’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption, the price of cement was still high.

He said market intelligence reviewed by the commission showed that the retail price of a 50kg bag of cement rose significantly during the first quarter of 2026.

Ijagwu said that a bag of cement which sold for between N9,300 and N9,700 in January was being sold for between N10,500 and N13,000 by mid-year.

The FCCPC spokesoerson said the report revealed that by July, the price of a bag of cement was reported to be sold for between N13,000 and N15,000 in some parts of the country.

Ijagwu noted that information provided by industry participants had identified energy costs, depreciation of the naira and its effect on imported machinery and spare parts among the factors contributing to cement prices.

Ijagwu also identified transportation and logistics costs.

He disclosed that the FCCPC has been testing these explanations against verified information on costs, production, pricing, and market conditions.

He, however, said the weight of preliminary findings provided sufficient grounds for the investigation to continue.