Cement prices in Nigeria have moderated in September 2026, with a 50kg bag of major brands selling for around ₦12,000 in several markets, down from the ₦13,000 to ₦15,000 range recorded in parts of the country in July and August. The price movement comes as HBM Nigeria expands its distribution network and the Federal Competition and Consumer Protection Commission (FCCPC) investigates pricing practices in the cement industry.
Key Highlights
- Cement prices have eased to around ₦12,000 per 50kg bag in several Nigerian markets.
- Prices had reached ₦13,000 to ₦15,000 in some locations during July and August.
- The FCCPC is investigating pricing practices across the cement industry.
- HBM Nigeria, formerly Lafarge Africa, is expanding its distribution network and seeking distributors with at least ₦250 million in working capital.
- Dangote, BUA and HBM remain among the major players competing for Nigeria’s cement market.
- Prices continue to vary according to location, transportation costs, dealer margins and supply conditions.
Cement Prices Ease After Mid-Year Surge
Cement prices rose sharply during the first half of 2026. Market reports put the price of a 50kg bag at about ₦9,300 to ₦9,700 in January before it moved to between ₦10,500 and ₦13,000 around mid-year.
By July, prices had reached between ₦13,000 and ₦15,000 in some parts of Nigeria. Recent September market surveys, however, show several major brands being quoted around ₦12,000 per bag.
Current prices still differ considerably from one location to another. Transportation expenses, dealer margins and local supply conditions remain important factors in determining the final retail price.
Despite the recent moderation, cement remains considerably more expensive than it was in previous years.
FCCPC Probe Puts Cement Manufacturers Under Scrutiny
The FCCPC launched an investigation into the cement industry following complaints over rising prices.
The Commission’s investigation followed a three-month cross-border study that raised concerns about possible anti-competitive practices and pricing conduct. Reports on the probe said Nigeria has installed cement production capacity of more than 60 million tonnes annually, while domestic demand is estimated at about 25 million to 30 million tonnes.
The investigation is examining factors that could explain the price increases, including production costs, energy expenses, foreign exchange pressures, logistics and distribution arrangements.
The probe has increased regulatory scrutiny of major cement producers as the government seeks explanations for the wide gap between installed production capacity and domestic prices.
HBM Steps Up Competition Against Dangote And BUA
Competition is also increasing with the expansion of HBM Nigeria Plc, formerly Lafarge Africa.
HBM became part of China’s Huaxin Cement group following the acquisition of Lafarge Africa. The company officially adopted the HBM Nigeria name in 2026. Its Nigerian operations have an installed cement production capacity of about 10.5 million tonnes annually.
In September, HBM began recruiting distributors across Nigeria. The company’s distributor requirements include at least ₦250 million in working capital, a warehouse of at least 500 square metres and access to five trucks with capacities of 20 or 40 tonnes.
The expansion comes as HBM seeks to increase its presence in a market dominated by established producers such as Dangote Cement and BUA Cement.
According to Proshare’s analysis of first-half 2026 filings, Dangote accounted for 56.2 per cent of the Nigerian revenue recorded by the three listed producers, compared with 22.7 per cent for BUA Cement and 21.1 per cent for HBM. The figures are revenue comparisons rather than volume-based market shares.
Read also:
- FCCPC Probes Cement Prices As 50kg Bag Costs Less In Kenya, Togo
- Dangote Cement to Host London Capital Markets Day Ahead of Secondary Listing
- Umahi Pushes for Reduction Of Cement Prices, Warns Manufacturers Over Rising Construction Costs
Why Cement Prices Remain High
While competition has increased, several cost pressures continue to affect cement prices.
Manufacturers have pointed to energy costs, diesel and gas expenses, foreign exchange pressures, spare-parts costs, transportation and poor road infrastructure as factors affecting production and distribution.
Logistics are particularly important because the cost of moving cement from factories to distributors and retail markets can significantly increase the final price paid by consumers.
The variation between prices in different parts of Nigeria reflects these differences in transportation and distribution costs.
Government Pressure And Possible Further Reductions
The Federal Government has engaged cement manufacturers over the high cost of the product, with discussions around measures that could bring prices down further.
Industry discussions have included possible prices in the ₦7,000 to ₦8,000 range, although reaching such levels would depend on production costs, energy prices, transportation expenses, market competition and government measures.
For now, the movement from ₦13,000 to ₦15,000 in some markets towards approximately ₦12,000 represents a moderation rather than a return to the lower prices recorded earlier in the year.
Outlook For Cement Prices In Nigeria
The direction of cement prices in Nigeria will depend on several factors over the coming months.
The FCCPC investigation could provide further clarity on pricing practices in the industry, while HBM’s expanding distribution network could increase competitive pressure on established producers.
At the same time, high energy, logistics and foreign exchange costs could limit how far manufacturers can reduce prices.
For builders, contractors and homeowners, the immediate development is a modest easing from the July and August highs. Whether that reduction becomes a sustained downward trend will depend on competition, production costs, regulatory findings and supply conditions.
For more updates on this and other business stories, follow us on X.
