By Oluwakemi Kindness
The Federal Competition and Consumer Protection Commission (FCCPC) has launched an investigation into possible manipulation of cement prices in Nigeria.
The Commission in a statement on Tuesday says its preliminary findings suggest that cement prices may not be fully explained by prevailing market conditions.
The statement by Ondaje Ijagwu, Director, Corporate Affairs FCCPC says the findings followed a three-month industry-wide investigation by the Commission’s Anticompetitive Practices Department.
The probe began after widespread complaints over the rising cost of cement, a key material in Nigeria’s construction industry.
The FCCPC said a 50kg bag of cement sold for between N9,300 and N9,700 in January 2026.
By mid-year, the price had risen to between N10,500 and N13,000.
By July, some parts of the country were selling a bag for between N13,000 and N15,000.
The Commission also found that Nigeria has installed cement production capacity of more than 60 million metric tonnes annually.
Domestic consumption, however, stands at an estimated 25 million to 30 million metric tonnes.
The FCCPC said Nigeria is also a net exporter of cement to neighbouring countries.
He said the high production capacity has not resulted in lower domestic prices as would normally be expected in a competitive market.
The Commission said three major cement manufacturers account for more than 90 per cent of installed production capacity.
Industry participants attributed the high prices to energy costs, naira depreciation, imported machinery and spare parts, transportation and logistics.
However, the FCCPC said it is testing those explanations against verified information on costs, production, pricing and market conditions.
The Commission will determine whether prevailing prices reflect legitimate costs or whether anti-competitive practices are involved.
It will also examine possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector.
The companies must provide records on their pricing methods, production, capacity utilisation, exports and relevant commercial relationships.
FCCPC Executive Vice Chairman, Tunji Bello, said the investigation reflects the Commission’s responsibility to protect consumers and ensure fair competition.
He said cement prices affect housing, commercial property, public infrastructure and the wider cost of doing business.
Bello said the investigation would not dictate how businesses make legitimate commercial decisions.
Instead, he said, the Commission would determine whether prices and other market outcomes result from genuine competition rather than unlawful conduct.
The FCCPC said the investigation is ongoing.
