FCCPC Probes Cement Industry Over Suspected Price Manipulation

The Federal Competition and Consumer Protection Commission (FCCPC) has launched an industry-wide investigation into the Nigerian cement market, following preliminary findings suggesting possible manipulation of prices.

The commission said the investigation was prompted by widespread complaints over the rising cost of cement, a major input in the construction industry.

In a statement on Tuesday by its Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said the findings emerged from a three-month cross-border study conducted by its Anticompetitive Practices Department.

The commission said preliminary findings contained in a 40-page field report indicated possible anti-competitive practices in the cement industry.

According to the FCCPC, the investigation was considered necessary because of concerns over the high price of cement in Nigeria despite the country’s abundant limestone deposits, substantial domestic production capacity and reported surplus installed capacity relative to local consumption.

It said all major cement manufacturers cooperated with the investigation by providing records required to examine the allegations.

As part of the exercise, the commission reviewed cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, comparing factors such as limestone availability, population, production capacity and consumption.

The FCCPC said its market assessment showed that a 50kg bag of cement sold for about $5.40, equivalent to N7,344, in Nairobi, Kenya, and $4.80, or N6,528, in Tanzania. In Togo, the same quantity sold for about $6.75, or N9,180.

The commission said market intelligence showed that cement prices in Nigeria had risen significantly during the first half of 2026.

A 50kg bag that sold for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by the middle of the year, while prices in some parts of the country reached between N13,000 and N15,000 by July.

The commission said the findings raised questions that required further investigation to determine whether the price increases were driven by legitimate market conditions or anti-competitive conduct.

It has subsequently issued Notices of Commencement of Investigation and Summons to Produce to key companies in the cement industry.

The affected companies are expected to submit information relating to their pricing mechanisms, production volumes, capacity utilisation, exports and relevant commercial relationships, the commission said.

Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation was necessary because of the importance of cement to the wider economy.

Bello said the price of cement had a direct impact on housing costs, commercial property development and public infrastructure, as well as the general cost of doing business.

He said the commission would continue to scrutinise the industry to establish whether consumers were being exposed to unfair or anti-competitive pricing practices.

The FCCPC said the ongoing investigation was part of its mandate to promote competition and protect consumers from practices capable of distorting markets or imposing unjustified costs on Nigerians.