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The Federal Competition and Consumer Protection Commission (FCCPC) has opened a formal investigation into Nigeria’s cement market following preliminary findings from an industry-wide study that indicated possible price manipulation and other anti-competitive practices.

The commission said the findings were drawn from a 40-page field report compiled following a three-month cross-border study by its Anticompetitive Practices Department, launched in response to widespread complaints about the rising cost of cement, a key input in Nigeria’s construction and housing sectors.

According to the FCCPC, concerns were raised about Nigeria’s comparatively high retail cement prices, despite the country’s substantial limestone deposits, significant domestic production capacity, and reported surplus installed capacity relative to domestic consumption.

The agency said that all major cement manufacturers cooperated with the review by making records available, except one. It also noted that publicly available estimates indicate that three major companies account for more than 90 per cent of installed production capacity in the country.

The investigation compared Nigeria’s market with selected African markets, including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. The FCCPC said it considered factors such as limestone availability, population, production capacity, consumption and retail prices.

In Kenya, where the population is estimated at 58.6 million and domestic cement demand at about 9.3 million metric tonnes per annum in 2025, a bag of cement sells for $5.40, or about N7,344, in Nairobi. Tanzania, with a population of 66.3 million and similar estimated demand, has a reported retail price of $4.80, or N6,528, per bag. In Togo, which the commission said lacks limestone deposits, a bag sells for $6.75, or N9,180.

By contrast, market intelligence reviewed by the FCCPC showed that the retail price of a 50kg bag of cement in Nigeria rose sharply in the first half of 2026. A bag that reportedly sold for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year, with prices of N13,000 to N15,000 reported in some parts of the country by July.

The commission said Nigeria has installed cement production capacity of 60 to 65 million metric tonnes annually, while estimated domestic consumption stands at about 25 to 30 million metric tonnes. Nigeria is also a net exporter of cement to neighbouring markets.

The FCCPC said the apparent mismatch between excess production capacity and rising domestic prices had become a major focus of the probe, as such capacity would ordinarily be expected to put downward pressure on prices in a competitive market.

Industry participants have cited energy costs, naira depreciation, imported machinery and spare parts, and transport and logistics as factors driving prices. The commission said it is testing those explanations against verified information on costs, production, pricing and market conditions.

The next phase of the investigation will determine whether prevailing cement prices are justified by legitimate costs and market dynamics, or whether they reflect 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.

The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the sector, requiring them to provide further information as the investigation continues.