Nigeria regulator probes cement sector for possible 'price manipulation'

The Federal Competition and Consumer Protection Commission has commenced an investigation into Nigeria's cement sector after preliminary findings from an industrywide review suggested "possible price manipulation" in the market, it said in a statement on Aug. 18.

The investigation follows a three-month cross-border study by the Commission's Anticompetitive Practices Department, developed in response to public complaints about the high cost of cement in Nigeria. According to the Commission, preliminary concerns include the gap between Nigeria's substantial limestone deposits, domestic cement production capacity and reported surplus installed capacity, compared with retail prices in the local market. The review also examined other markets, including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, using metrics such as limestone availability, population, production capacity and consumption.

The FCCPC said market intelligence reviewed by the Commission showed that retail prices for a 50 kg bag of cement rose significantly during the first half of 2026, with reported prices increasing from about N9,300-N9,700 in January to N10,500-N13,000 by mid-year, and reaching N13,000-N15,000 in some parts of the country by July. The Commission also said Nigeria has installed cement production capacity of more than 60 million to 65 million metric tons annually, while estimated domestic consumption is about 25 million to 30 million mt, with Nigeria also exporting cement to neighboring markets.

The FCCPC said it is examining whether current prices can be explained by legitimate market factors, including energy costs, depreciation of the naira, imported machinery and spare parts, transportation and logistics costs, or whether evidence points to coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct contrary to competition law.

As part of the inquiry, the Commission has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement sector. The companies are required to provide records and information relating to pricing methodologies, production and capacity utilization, exports and relevant commercial relationships.

FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello said the investigation is intended to establish facts, rather than proceed on assumptions. "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," Bello 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," he added.

Bello also stressed that competition scrutiny does not amount to price control or interference in lawful commercial decisions. "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," he said.

The FCCPC is Nigeria's competition and consumer protection regulator, with responsibility for examining market conditions that affect consumers and the wider economy, and for ensuring that markets function through fair competition rather than conduct that unlawfully restricts it. The Commission has emphasized that its role is not to dictate business decisions or prevent companies from earning legitimate returns, but to protect the competitive process and assess whether consumers are receiving the benefits of effective competition.

The investigation remains ongoing, and the Commission has not announced any final findings against any company in the sector.