Cement Cheaper In Kenya, Tanzania, Togo’ – Nigerian Government Probes Price Manipulation In Cement Market
‘Cement Cheaper In Kenya, Tanzania, Togo’ – Nigerian Government Probes Price Manipulation In Cement Market
The investigation was undertaken in response to widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.
The Federal Competition and Consumer Protection Commission (FCCPC) says findings from an industry-wide investigation suggest possible manipulation of cement prices in the Nigerian market.
The commission disclosed this in a statement issued on Tuesday, August 18, 2026, saying the findings were the preliminary summation of 40-page field reports compiled following a three-month cross-border study by its Anticompetitive Practices Department (ACP).
The investigation was undertaken in response to widespread public complaints over the high cost of cement, a common staple in the country’s construction industry.
The commission said 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.
“Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission (FCCPC) suggest possible manipulation of prices of cement in the Nigerian market,” the commission said.
Significantly, the FCCPC said all major cement manufacturers in the country cooperated with the investigation by making their records available, “except one of them.”
The commission noted that publicly available estimates indicate that three major undertakings account for more than 90 percent of installed cement production capacity in Nigeria.
As part of the investigation, the ACP examined cement markets in Sub-Saharan African countries, including Kenya, Tanzania and South Africa, as well as Egypt, Morocco and Algeria.
The commission said the metrics adopted for the comparison included the availability of limestone, the basic raw material for cement production, as well as population, production capacity and consumption.
In Kenya, the FCCPC said the country’s 58.6 million population, which is 76 percent lower than Nigeria’s, had domestic cement demand of approximately 9.3 million metric tonnes per annum in 2025.
Despite having limestone deposits, a bag of cement reportedly retailed for $5.40, equivalent to N7,344, in Nairobi.
In Tanzania, with a population of 66.3 million, described as 72 percent lower than Nigeria’s, domestic cement demand stood at 9.3 million metric tonnes in 2025, while a bag of cement sold for $4.80, or N6,528.
The commission also cited Togo, where a bag of cement sells for $6.75, equivalent to N9,180, despite the country not having limestone deposits.
Comparatively, the FCCPC said market intelligence reviewed by the commission showed that the retail price of a 50kg bag of cement rose significantly in Nigeria 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 said.
The commission’s survey also indicated that Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption is approximately 25 to 30 million metric tonnes.
“Nigeria is also a net exporter of cement to neighbouring markets,” the FCCPC said.
The commission said it was particularly concerned that the country’s level of production capacity had not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity.
Industry participants, according to the FCCPC, identified energy costs, depreciation of the naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among factors contributing to cement prices.
However, the commission said it was testing those 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 FCCPC said.
It said the next stage would be 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.”
Accordingly, the FCCPC said it had issued “Notices of Commencement of Investigation and Summons to Produce” to key players in the sector.
The commission’s investigation could have significant implications for Nigeria’s cement manufacturers and consumers, particularly amid concerns that rising cement prices are increasing the cost of construction and worsening the affordability of housing and infrastructure projects.
The FCCPC said the investigation remains ongoing and that its preliminary findings do not constitute a final determination of liability against any company.
The commission is expected to establish whether the prevailing prices are justified by legitimate production and distribution costs or are the result of conduct prohibited under the Federal Competition and Consumer Protection Act (FCCPA).
