Regulator Probes Possible Cement Price Fixing
Nigeria’s Federal Competition and Consumer Protection Commission has found preliminary evidence of possible price manipulation in the cement market and has formally opened a full investigation into the industry’s major players.
The findings, released on Tuesday, come from a three-month cross-border study by the Commission’s Anticompetitive Practices Department. The 40-page field reports were compiled in response to widespread public complaints about the high cost of cement, a basic input in the construction sector. According to the agency, all major manufacturers cooperated by providing records except one, though it failed to mention the exclusion.
The Commission noted that Nigeria possesses substantial limestone deposits, installed production capacity of 60 to 65 million metric tonnes a year, and estimated domestic consumption of only 25 to 30 million tonnes. The country is also a net exporter to neighbouring markets. Despite this surplus capacity, retail prices have risen sharply. A 50 kg bag that sold for between ₦9,300 and ₦9,700 in January was trading at ₦10,500 to ₦13,000 by mid-year, with prices of ₦13,000 to ₦15,000 reported in some areas by July.
Comparisons with other African markets underscored the disparity. In Kenya, where population and demand are far lower, a bag retailed at the equivalent of about ₦7,344. In Tanzania the price was roughly ₦6,528. Even in Togo, which lacks limestone deposits, a bag sold for about ₦9,180.
Industry participants have cited energy costs, naira depreciation affecting imported machinery and spare parts, and transport and logistics expenses as drivers of higher prices. The Commission is testing these explanations against verified cost, production and market data. Executive Vice Chairman Tunji Bello said the investigation reflects the agency’s duty to examine market conditions that carry significant consequences for consumers and the wider economy. “Cement occupies a strategic place in the Nigerian economy,” he noted. “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 emphasised that competition law does not prevent businesses from making legitimate commercial decisions or earning returns on investment. Its purpose is to ensure that prices and other market outcomes are determined by genuine competition rather than conduct that unlawfully restricts it.
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key companies, requiring them to submit detailed information on pricing methodologies, production and capacity utilisation, exports and commercial relationships. The next phase will determine whether current 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 or other anti-competitive practices under the Federal Competition and Consumer Protection Act.
