FCCPC uncovers cement price manipulation as bag hits N15,000
By Aboki Forex —
The Federal Competition and Consumer Protection Commission (FCCPC) is investigating possible manipulation in Nigeria's cement market after a three-month probe found prices climbing as high as N15,000 per 50kg bag by July. The commission announced its preliminary findings on Tuesday, August 18, 2026, and has summoned major manufacturers to explain their pricing.
FCCPC Executive Vice Chairman and CEO Tunji Bello said the investigation was necessary because cement prices directly affect housing, commercial property development, infrastructure and the wider cost of doing business. He stressed that the commission was not seeking to dictate how companies operate but to establish whether the market is functioning competitively and whether consumers are benefiting.
Prices jumped despite surplus capacity
According to a 40-page field report from the FCCPC's Anticompetitive Practices Department, cement prices rose from about N9,300-N9,700 per 50kg bag in January to N10,500-N13,000 by mid-year, before reaching N13,000-N15,000 in some locations by July.
The commission said its market intelligence showed the sharp rise despite Nigeria's huge limestone deposits, significant local production capacity and reported excess supply. Publicly available estimates indicate that three major operators control more than 90 per cent of Nigeria's installed cement production capacity. All major manufacturers made their records available except one.
Nigeria has installed cement production capacity estimated at more than 60-65 million metric tonnes annually, compared with domestic consumption of about 25-30 million tonnes. The country is also a net exporter of cement to neighbouring markets. The FCCPC said such significant excess capacity would ordinarily be expected to create competitive pressure and help moderate prices. Instead, prices continued to rise, prompting deeper scrutiny of the industry.
Nigeria's prices higher than other African markets
The commission expanded its investigation to cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. Its findings showed that a 50kg bag of cement sells for about $5.40 (N7,344) in Kenya and $4.80 (N6,528) in Tanzania. In Togo, where there are no limestone deposits, the price was about $6.75 (N9,180).
The comparisons have intensified concerns over whether production costs and other market conditions fully explain Nigeria's higher prices.
Manufacturers summoned, next phase begins
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key industry players. The manufacturers are expected to provide information on pricing methods, production, capacity utilisation, exports and commercial relationships.
The next phase will determine whether current prices are justified by legitimate costs and market conditions or whether there is evidence of coordinated pricing, abuse of market power, restricted domestic supply or other anti-competitive practices. If violations are established, the investigation could trigger stronger regulatory action in an industry whose prices have a direct impact on the cost of building homes and infrastructure across Nigeria.
Nigeria's three largest listed cement manufacturers, Dangote Cement, BUA Cement and HBM Nigeria, recently reported robust first-half 2026 earnings, driven by higher sales volumes, improved operational efficiency and a more stable foreign exchange environment. The sharp increase in cement prices also played a significant role in boosting their revenues and profitability.
For Nigerian consumers and businesses, the outcome of this investigation could determine whether cement prices fall to levels more in line with the country's production capacity, or remain a major cost pressure on housing, construction and infrastructure development.