Cement Price Hike: FCCPC Establishes Possible Manipulation, Summons Key Players
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.
A statement signed by Mr Ondaje Ijagwu, FCCPC’s Director, Corporate Affairs in Abuja on Tuesday, said the Commission had issued notices of commencement of further investigation and ‘summons to produce’ to key players in the sector.
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.
He 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 commission, Ijagwu said that FCCPC’s Anti-competitive Practices Department (ACP) had embarked on a three-month cross-border study of the sector.
He said that 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.
He said that of particular concern to the commission was that the level of production capacity had not resulted in downward pressure on domestic prices.
”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 said.
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 tonnes per annum) in 2025.
”Retail price in Nairobi is 5.40 dollars (N7,344). Kenya is endowed with limestone. ”In Tanzania, with a population of 66.3m (72 per cent lower than Nigeria’s) and domestic cement demand of 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,” he said.
Ijagwu said the ACP’s report indicated that despite 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 that 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 reportedly sold for between N9,300 and N9,700 in January was being sold for between N10,500 and N13,000 by mid-year.
The director 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.
He said 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.
He also identified transportation and logistics costs. According to him, the commission is testing these explanations against verified information on costs, production, pricing and market conditions.
He, however, said that the weight of preliminary findings provided sufficient grounds for the investigation to continue.
Jagwu quoted the Executive Vice Chairman/Chief Executive Officer of FCCPC, Mr Tunji Bello, as saying that the investigations reflected the commission’s responsibility to examine market conditions that had significant consequences for consumers and the economy.
According to Bello, 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.
”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 said.
Bello said that competition scrutiny was not intended to dictate the commercial decisions of businesses.
He said that its purpose was to determine whether the market was functioning competitively and whether consumers were receiving the benefits that effective competition should provide.
”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. ”That distinction is important to the work we are undertaking,” he said. #Cement Price Hike: FCCPC Establishes Possible Manipulation, Summons Key Players# Investors Note: Before Dangote Cement Price Recovery Begins
