The Federal Competition and Consumer Protection Commission has flagged possible manipulation of cement prices in Nigeria following a three-month investigation into the rising cost of the building material despite the country’s substantial production capacity and limestone deposits.

The commission said its preliminary findings showed that the prevailing prices of cement could not be fully explained by market conditions, prompting it to open a further investigation into possible anti-competitive practices in the sector.

The findings followed a cross-border study conducted by the FCCPC’s Anticompetitive Practices Department in response to widespread complaints over the high cost of cement.

In a statement issued on Tuesday by the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, the commission said the study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

The study examined factors including limestone availability, population, production capacity, consumption and retail prices.

The statement read, “Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market. This is the preliminary summation of the 40-page field reports collated following a three-month cross-border study by the Anticompetitive Practices Department of the Commission, undertaken in response to widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.”

The FCCPC said Nigeria had substantial limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million metric tonnes.

Despite the reported excess capacity and Nigeria’s position as a net exporter to neighbouring countries, the commission said domestic cement prices had continued to rise.

According to the commission, market intelligence showed that a 50kg bag of cement, which sold for between N9,300 and N9,700 in January, rose to between N10,500 and N13,000 by mid-year.

By July, the price had risen to between N13,000 and N15,000 in some parts of the country.

The FCCPC also found that cement was sold at lower prices in some African markets.

In Kenya, where the population is about 58.6 million and cement demand was estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344.

In Tanzania, with a population of about 66.3 million and similar cement demand, the product sold for about $4.80, equivalent to N6,528, while in Togo, which the commission said had no limestone deposits, cement retailed at about $6.75, or N9,180 per bag.

The statement noted, “In Kenya, for instance, the 58.6 million population (76% lower than Nigeria’s) has domestic cement demand of approximately 9.3m MTPA (metric tonne per annum) in 2025. Retail price in Nairobi is $5.40 (N7,344). Kenya is endowed with limestone. In Tanzania, with population of 66.3m (72% lower than Nigeria’s) and the domestic cement demand is 9.3m MTPA (2025), a bag of cement sells for $4.80 (N6,528). In Togo, a bag sells for $6.75 (N9,180). Significantly, Togo does not have limestone deposit.”

The commission said the price disparity raised questions about why Nigeria’s significant production capacity and raw material endowment had not translated into greater downward pressure on prices.

It said industry players had attributed the high prices to energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics expenses.

However, the FCCPC said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and other market conditions.

“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.

“Information provided by industry participants has identified energy costs, depreciation of the Naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among the factors contributing to cement prices. 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 said.

The FCCPC said the ongoing probe would determine whether cement prices were being driven by legitimate costs and market conditions or by anti-competitive practices.

It said the investigation would examine possible coordinated conduct, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.

The commission has consequently issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector, demanding records relating to pricing methodologies, production, capacity utilisation, exports and commercial relationships.

“Next is to determine whether prevailing cement prices can be explained by legitimate costs and market conditions, or whether there is evidence of coordinated conduct, abuse of market power, restriction of domestic supply, anti-competitive distribution practices or other conduct contrary to the provisions of the FCCPA,” it added.

Commenting on the investigation, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the probe was necessary because of cement’s strategic importance to the Nigerian 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.

He stressed that the investigation was not aimed at dictating how companies should conduct their businesses or restricting legitimate profits.

“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,” Bello said.

The investigation comes amid growing pressure on the construction sector, where rising cement prices have increased the cost of housing and infrastructure projects across the country.