The Federal Competition and Consumer Protection Commission (FCCPC) has commenced a deeper investigation into Nigeria’s cement market after preliminary findings raised concerns over the sharp difference between local prices and those in some other African countries.
The commission said its three-month cross-border assessment suggests that the current price of cement in Nigeria may not be explained entirely by normal market forces.
The investigation was launched following widespread complaints over the rising cost of cement, a major component of construction and housing projects.
In a statement on Tuesday, the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the commission’s Anti- competitive Practices Department compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
The assessment considered factors such as limestone deposits, population, production capacity, domestic consumption and retail prices.
According to the FCCPC, Nigeria has an estimated installed cement production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is put at about 25 million to 30 million metric tonnes.
The commission noted that the country also possesses substantial limestone deposits and is a net exporter of cement to some neighbouring countries.
Despite these advantages, however, the price of cement in Nigeria has continued to rise.
The FCCPC said its market intelligence showed that a 50kg bag of cement, which sold for approximately N9,300 to N9,700 in January, had increased to between N10,500 and N13,000 by the middle of the year.
By July, prices in some parts of the country had climbed further to between N13,000 and N15,000 per bag.
The commission’s cross-border comparison showed that consumers in some African countries were paying considerably less for a 50kg bag of cement.
In Kenya, for instance, a bag sold for about $5.40, equivalent to approximately N7,344, despite the country’s population being about 58.6 million and its estimated cement demand standing at 9.3 million metric tonnes in 2025.
Tanzania recorded an even lower price, with a 50kg bag selling for about $4.80, or approximately N6,528. The country has a population of about 66.3 million and similar estimated annual cement demand of 9.3 million metric tonnes.
In Togo, where the FCCPC said there are no limestone deposits, cement sold for approximately $6.75, equivalent to about N9,180 per bag.
The commission said the price differences had raised questions about why Nigeria’s substantial raw-material base and production capacity had not translated into lower domestic prices.
Cement producers and other industry participants have cited several factors for the high cost of the product.
These include rising energy expenses, the depreciation of the naira, higher costs of imported machinery and spare parts, as well as transportation and logistics.
The FCCPC said it was assessing those explanations against verified information on production expenses, pricing, capacity utilisation and broader market conditions.
The commission said the preliminary findings were significant enough to warrant a continuation of the investigation.
It is now examining whether the prevailing prices are the result of legitimate production and distribution costs or whether anti-competitive practices may be contributing to the situation.
Areas being investigated include possible coordination among market participants, abuse of market power, restrictions on domestic supply and anti-competitive distribution arrangements.
As part of the investigation, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to major industry participants.
The companies are expected to provide information covering their pricing methods, production levels, capacity utilisation, exports and commercial relationships.
The commission said the information would help establish whether market conditions genuinely justify the current prices or whether there are practices capable of restricting competition.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because of the importance of cement to the Nigerian economy.
Read also:
- FCCPC Calls for Greater Cooperation Among Power Regulators to Strengthen Consumer Protection
- FCCPC, Lagos Consumer Agency Move Against Unfair Trade Practices
- Subscribers lament as FCCPC directive halts airtime, data borrowing services
He noted that the price of the commodity has a direct impact on the cost of housing, commercial development, public infrastructure and business operations.
Bello stressed that the commission was not seeking to control the legitimate commercial decisions or profits of cement producers.
According to him, competition law allows businesses to make legitimate commercial decisions and earn returns on their investments, but prohibits conduct that unlawfully restricts competition.
The FCCPC’s investigation comes at a time when high construction costs are putting additional pressure on housing development and infrastructure projects across Nigeria.
The outcome of the probe could determine whether the recent rise in cement prices is primarily a consequence of genuine economic and production pressures or whether anti-competitive behaviour is also contributing to the burden on Nigerian consumers.
