Cement prices in Nigeria beat African peers, FCCPC probe finds
By Aboki Forex —
The Federal Competition and Consumer Protection Commission says its preliminary investigation into Nigeria's cement industry suggests possible manipulation of prices, after a three-month cross-border study found that Nigerian buyers pay more than consumers in several African countries.
The FCCPC said it has opened an investigation into possible price manipulation, and issued summons to key players in the sector. It compared Nigeria's cement market with Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.
Price gap across African markets
According to the FCCPC, a 50kg bag of cement sold for between N9,300 and N9,700 in January. By mid-year it had risen to between N10,500 and N13,000. In July, prices of between N13,000 and N15,000 were reported in some parts of the country.
The study found lower prices elsewhere. In Kenya, with a population of about 58.6 million and cement demand estimated at 9.3 million metric tonnes in 2025, a bag sold for about $5.40, or N7,344. In Tanzania, with a population of about 66.3 million and similar demand, a bag sold for about $4.80, or N6,528. In Togo, which has no limestone deposits, cement retailed at about $6.75, or N9,180 per bag.
The commission's report, released in a statement by Director of Corporate Affairs Ondaje Ijagwu, said Nigeria has substantial limestone deposits and installed production capacity of between 60 million and 65 million metric tonnes annually. Domestic consumption is about 25 million to 30 million metric tonnes. Despite the excess capacity and Nigeria's position as a net exporter, domestic prices kept rising.
What the probe will examine
The FCCPC said it is testing industry explanations for high prices, including energy costs, naira depreciation, imported machinery and spare parts, and transportation and logistics expenses.
“The commission is testing these explanations against verified information on costs, production, pricing and market conditions. However, the weight of preliminary findings provides sufficient grounds for the investigation to continue,” the statement read.
The probe will look into possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices. The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players, demanding records on pricing, production, capacity utilisation, exports and commercial relationships.
FCCPC Executive Vice Chairman and CEO Tunji Bello said the investigation was necessary because of cement's strategic importance to the economy. “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,” Bello said.
What it means for consumers
If the FCCPC proves anti-competitive conduct, cement prices could fall, lowering the cost of construction and housing. For now, builders and households face cement prices far above those paid in comparable African markets, while the commission digs deeper.