…probes suspected price manipulation
From Fred Ezeh, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered some red flags that suggested possible manipulation of cement prices in the Nigerian market.
The Commission disclosed this in a statement issued on Tuesday and signed by its Director, Corporate Affairs, Ondaje Ijagwu.
It said the discovery followed a three-month cross-border investigation by its Anticompetitive Practices Department (ACP), launched in response to widespread complaints over the high cost of cement.
“The investigation compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors including limestone availability, population, production capacity and domestic consumption,” the Commission said in the statement.
FCCPC said concerns were raised over the comparatively high retail price of cement in Nigeria despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity.
It confirmed that all major cement manufacturers in the country cooperated with the investigation by making their records available, except one, and added that publicly available estimates indicated that three major companies account for more than 90 per cent of installed cement production capacity in Nigeria.
“The investigation found significant differences in cement prices across the markets studied. In Kenya, with a population of 58.6 million and domestic cement demand of about 9.3 million metric tonnes per annum in 2025, a bag of cement reportedly sold for $5.40, equivalent to about N7,344.
“In Tanzania, with a population of 66.3 million and similar domestic demand of 9.3 million metric tonnes, a bag sold for about $4.80, or N6,528. In Togo, where there are no limestone deposits, a bag of cement reportedly sold for $6.75, equivalent to N9,180.”
FCCPC said by comparison, market intelligence showed that the price of a 50kg bag of cement in Nigeria rose sharply during the first half of 2026, noting that a bag that sold 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 reportedly recorded in some parts of the country.”
The FCCPC said Nigeria has installed cement production capacity of more than 60 to 65 million metric tonnes annually, while estimated domestic consumption is between 25 million and 30 million metric tonnes.
It added that Nigeria is also a net exporter of cement to neighbouring markets, but expressed concern that the high level of production capacity had not resulted in the downward pressure on domestic prices that would ordinarily be expected in a competitive market with substantial excess capacity.
FCCPC disclosed that iIndustry participants told the Commission that energy costs, depreciation of the naira and its impact on imported machinery and spare parts, as well as transportation and logistics costs, were among the factors contributing to the high cost of cement.
However, the FCCPC said it was testing the explanations against verified information on costs, production, pricing and market conditions, and that preliminary findings provided sufficient grounds for the investigation to continue.
“The next phase will 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 prohibited under the Federal Competition and Consumer Protection Act (FCCPA).
Consequently, the FCCPC said it has issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector. “The companies are required to provide information and records relating to their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.”
The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation reflected the Commission’s responsibility to examine market conditions with significant consequences for consumers and the wider economy.
Bello said cement occupied a strategic position in the Nigerian economy because its price affected the cost of building homes, developing commercial property, delivering public infrastructure and doing business.
He stressed that the investigation was not intended to dictate the commercial decisions of businesses, but to determine whether the market was functioning competitively and whether consumers were benefiting from effective competition.
“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 Sun)