The Federal Competition and Consumer Protection Commission (FCCPC) has raised the alarm over what it described as possible manipulation of cement prices in Nigeria.

The findings, published in a 40-page field report produced by the commission’s Anticompetitive Practices Department, followed a three-month cross-border assessment of cement markets.

In a statement Tuesday, the FCCPC director of corporate affairs, Ondaje Ijagwu, said the investigation responded to widespread concerns over rising cement prices in the country.

“Concerns were raised over the comparatively high retail price of cement in Nigeria compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption,” the statement said.

The commission said all major cement manufacturers in the country cooperated by making their records available, except one, noting that publicly available estimates indicated three major undertakings accounted for more than 90 per cent of installed production capacity in the country.

According to the commission, ACP cross-examined cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, focusing on factors including limestone availability, population, production capacity and domestic consumption.

It noted that in Kenya, with a population of 58.6 million (76% lower than Nigeria), domestic cement demand was approximately 9.3m (metric tonnes per annum) in 2025, adding that the retail price in Nairobi was $5.40 (N7,344).

Tanzania, with a population of approximately 66.3 million, recorded a similar estimated domestic demand of 9.3 million MTPA in 2025, while a bag of cement sold for about $4.80, or N6,528.

According to FCCPC, a bag of cement sells for $6.75, or N9,180, in Togo, a country it noted has no limestone deposits. In Nigeria, the retail price of cement rose during the first half of 2026.

“A bag reportedly selling for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year. By July, prices of between N13,000 and N15,000 were reported in some parts of the country,” it added.

Noting that the gap between installed production capacity and domestic consumption was concerning, given that the excess capacity had not resulted in lower prices, the commission said industry participants blamed cement prices partly on energy costs, the depreciation of the naira and its impact on imported machinery and spare parts, and transportation and logistics expenses.

The FCCPC stated, “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 commission said it was ready to determine whether legitimate production costs and market conditions justify prevailing cement prices, or whether evidence shows coordinated conduct, abuse of market power, restrictions on domestic supply, anti-competitive distribution practices, or other violations of the Federal Competition and Consumer Protection Act (FCCPA).

It noted that the commission had issued notices of commencement of investigation and summons to key industry players, seeking information and records on pricing methodologies, production, capacity utilisation, exports, and relevant commercial relationships.

Tunji Bello, FCCPC’s CEO, said the investigation was part of the commission’s mandate to examine market conditions with significant implications for consumers and the broader economy.

“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,” Mr Bello said.