Cement prices in Nigeria versus Kenya, Tanzania: FCCPC queries why local buyers pay more

The Federal Competition and Consumer Protection Commission, FCCPC, has raised fresh concerns over cement prices in Nigeria after a three-month investigation. A 50kg bag now sells for as high as N15,000 in parts of the country, far above prices in Kenya and Tanzania.

The commission stated this on Tuesday, August 18, through its Director of Corporate Affairs, Ondaje Ijagwu. It compared Nigeria's cement market with Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, looking at limestone access, production capacity, population and retail prices.

Big production, higher prices

Nigeria has an estimated installed cement production capacity of between 60 million and 65 million metric tonnes per year. Actual domestic consumption is about 25 million to 30 million tonnes. The country is also a net exporter of cement to neighbouring nations.

Despite that surplus capacity, prices have climbed sharply. In January, a 50kg bag sold for between N9,300 and N9,700. By mid-year, it rose to between N10,500 and N13,000. In some parts of the country, prices reached N13,000 to N15,000 in July.

The FCCPC said this trend raises a key question: why has Nigeria's large production base and ready access to local limestone not pushed domestic prices down?

What other African countries pay

The cross-border comparison showed that cement in several African countries costs considerably less than in Nigeria. In Kenya, with a population of about 58.6 million and cement demand estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for around $5.40, the equivalent of N7,344.

In Tanzania, with roughly 66.3 million people and similar demand figures, the same quantity sold for about $4.80, or N6,528. Even Togo, which has no limestone deposits of its own, recorded a price of about $6.75 per 50kg bag, equivalent to N9,180.

Cement producers in Nigeria have blamed higher energy costs, naira depreciation, expensive imported machinery and spare parts, and logistics expenses. The FCCPC said it is verifying those claims against actual production cost data and capacity utilisation figures.

Investigation and summonses

The commission said: "Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity."

The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to major players in the industry. They must submit data on pricing methods, production volumes, capacity utilisation, exports and commercial relationships.

The probe will look at possible coordinated pricing, abuse of market power, restrictions on supply and anti-competitive distribution practices.

Tunji Bello, executive vice chairman and chief executive of the FCCPC, said cement's role in Nigeria's economy makes the investigation essential. He clarified that the investigation is not designed to block companies from earning returns.

Earlier, the federal government urged cement manufacturers to cut prices, warning that the prevailing price of the commodity was impacting infrastructure projects and escalating demands for contract variations. Pressure has mounted on the ministry to alter existing contracts based on the increasing costs of cement.

For Nigerian consumers and businesses, the FCCPC's findings reinforce a painful reality: the country produces more than enough cement, yet buyers pay some of the highest prices on the continent. The outcome of this investigation could determine whether market forces or coordinated conduct are truly behind the cost of a bag of cement.