FCCPC probes why cement costs N15,000 in Nigeria but N7,344 in Kenya
The Federal Competition and Consumer Protection Commission (FCCPC) has initiated a comprehensive probe into suspected price manipulation in Nigeria’s cement industry, following a dramatic spike in retail prices that now exceed N15,000 per 50kg bag. The regulatory agency confirmed that it has summoned major cement manufacturers to appear before it and provide detailed explanations regarding their pricing methodologies, production capacities, and commercial strategies.
The investigation, which follows widespread public outcry over the exorbitant cost of cement, was triggered by findings from a three-month cross-border study conducted by the FCCPC’s Anti-competitive Practices Department (ACP). The study, which examined cement markets across sub-Saharan Africa and North Africa, revealed stark disparities between Nigeria’s cement prices and those in comparable markets, despite the country’s abundant natural and production advantages.
The FCCPC has issued Notices of Commencement of Investigation and Summons to Producer to the three dominant players in Nigeria’s cement sector—Dangote Cement Plc, HMB Nigeria Plc (formerly Lafarge Africa Plc), and BUA Cement Plc—which collectively account for over 90% of the nation’s cement production.
Cross-Border Analysis Reveals Pricing Anomalies
The FCCPC’s investigation extended beyond Nigeria’s borders, comparing local cement prices with those in Kenya, Tanzania, South Africa, Egypt, Morocco, and Algeria. The comparison, based on metrics such as limestone availability, population size, production capacity, and consumption patterns, highlighted a troubling trend: Nigeria’s cement prices remain disproportionately high despite its substantial limestone deposits, domestic production capacity, and reported surplus installed capacity.
A comparative price analysis presented by the FCCPC underscores the disparity:
| Country | Population (2025 est.) | Cement Price (50kg bag) | Key Observations |
|---|---|---|---|
| Kenya | 58.6 million | N7,344 | Limestone-rich; demand: ~9.3M MTPA |
| Tanzania | 66.3 million | N6,528 | Limestone-rich; demand: ~9.3M MTPA |
| Togo | 8.6 million | N9,180 | No limestone deposits |
| Nigeria | 230 million | N15,000 | Limestone-rich; demand: ~25-30M MTPA; surplus capacity: 60-65M MTPA |
The FCCPC noted that while Nigeria’s installed cement production capacity stands at 60 to 65 million metric tonnes annually, domestic consumption hovers between 25 to 30 million metric tonnes. Furthermore, Nigeria is a net exporter of cement to neighboring markets, yet this surplus capacity has not translated into lower domestic prices—a phenomenon the commission described as “particularly concerning”.
In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC emphasized:
“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 statement added that the investigation was prompted by persistent public complaints regarding the high cost of cement, which directly impacts housing affordability, commercial property development, public infrastructure projects, and overall business costs.
FCCPC’s EVC Highlights Strategic Importance of Cement Market
Mr. Tunji Bello, Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the FCCPC, underscored the critical role cement plays in Nigeria’s economy. In a press statement, he explained that the commission’s decision to investigate was driven by the need to ensure that market conditions serve the public interest.
Bello stated:
“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.”
He clarified that the FCCPC’s scrutiny is not an attempt to interfere with legitimate business operations but rather an effort to determine whether the market is operating competitively and whether consumers are benefiting from effective competition as intended by law.
Bello further elaborated:
“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. That distinction is important to the work we are undertaking.”
The EVC/CEO emphasized that the commission’s role is to safeguard the competitive process, ensuring that market outcomes—such as pricing—are shaped by genuine competition rather than anti-competitive practices.
Preliminary Findings and Next Steps in the Investigation
The FCCPC’s Anti-competitive Practices Department has identified several factors that industry participants cite as contributing to the high cost of cement, including energy costs, the depreciation of the naira (which affects the cost of imported machinery and spare parts), and elevated transportation and logistics expenses.
The commission acknowledged these factors but stressed that it is verifying the claims against documented evidence on production costs, pricing structures, and market conditions. While the explanations provided by industry stakeholders are being considered, the FCCPC stated that its preliminary findings suggest sufficient grounds to continue the investigation.
The FCCPC outlined its next steps, stating:
“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.”
The commission also provided additional context from its cross-border study, highlighting specific examples that raise questions about Nigeria’s pricing structure:
- Kenya, with a population of 58.6 million (76% lower than Nigeria’s), had a domestic cement demand of approximately 9.3 million metric tonnes per annum (MTPA) in 2025. The retail price in Nairobi was $5.40 or N7,344 per 50kg bag. Kenya possesses significant limestone reserves.
- Tanzania, with a population of 66.3 million (72% lower than Nigeria’s), also recorded a domestic cement demand of 9.3M MTPA by 2025, with a bag of cement priced at $4.80 or N6,528. Tanzania, like Kenya, has abundant limestone resources.
- Togo, which lacks limestone deposits, sold cement at $6.75 or N9,180 per 50kg bag.
In stark contrast, Nigeria—endowed with vast limestone deposits and substantial production capacity—has seen cement prices escalate dramatically in 2026. According to market intelligence reviewed by the FCCPC:
- In January 2026, a 50kg bag of cement retailed between N9,300 and N9,700.
- By mid-2026, prices had surged to between N10,500 and N13,000.
- By July 2026, the price in some regions reached N13,000 to N15,000.
The FCCPC’s investigation aims to uncover whether these price hikes are justified by legitimate cost factors or if they reflect potential violations of the Federal Competition and Consumer Protection Act (FCCPA), including collusion, market dominance abuse, supply restrictions, or anti-competitive distribution practices.
The commission has called on all stakeholders, including cement manufacturers, industry analysts, and consumers, to cooperate fully with the investigation to ensure transparency and accountability in the market.