The Federal Competition and Consumer Protection Commission (FCCPC) has opened a further investigation into Nigeria’s cement market after preliminary findings suggested that the country’s high cement prices may not be fully explained by normal market conditions.
The investigation follows a three-month cross-border study by the FCCPC’s Anticompetitive Practices Department, conducted in response to widespread complaints over the rising cost of cement.
The commission compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo, examining factors including limestone availability, production capacity, domestic consumption and retail prices.
Cement Prices Rise Despite Local Production Capacity
According to the FCCPC, Nigeria has substantial limestone deposits and installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually.
Domestic consumption, however, is estimated at between 25 million and 30 million tonnes, meaning the country has significant installed capacity relative to its domestic demand.
Despite this, cement prices have continued to rise.
The FCCPC said a 50kg bag that sold for about ₦9,300 to ₦9,700 in January had risen to between ₦10,500 and ₦13,000 by mid-year.
By July, prices had reached between ₦13,000 and ₦15,000 in some parts of the country.
Cement Cheaper in Kenya and Togo
The commission’s international comparison produced another notable finding.
In Kenya, where the population is significantly smaller than Nigeria’s and domestic cement demand was estimated at 9.3 million tonnes in 2025, a 50kg bag sold for approximately $5.40, equivalent to about ₦7,344 based on the exchange rate used in the study.
In Tanzania, the equivalent price was about $4.80, or approximately ₦6,528.
Even in Togo, a country the FCCPC said does not have limestone deposits, a 50kg bag sold for approximately $6.75, equivalent to about ₦9,180.
The comparison has raised questions about why Nigerian consumers are paying substantially more despite the country’s considerable limestone resources and installed production capacity.
FCCPC Investigates Possible Anti-Competitive Practices
The commission said its preliminary findings indicate possible manipulation of cement prices in the Nigerian market.
However, the investigation is still ongoing.
The FCCPC said it will examine whether prices are being driven by legitimate production and distribution costs or whether anti-competitive practices may be contributing to the situation.
Areas under investigation include possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.
The findings therefore should not be interpreted as proof that cement manufacturers have engaged in illegal price manipulation. The investigation is intended to establish what is actually driving prices.
What High Cement Prices Mean for Housing
The issue extends beyond the construction industry.
Cement is one of the most important inputs in building houses, roads and other infrastructure. When its price rises sharply, developers face higher construction costs.
Those costs can eventually be passed on to homebuyers through higher property prices.
For households attempting to build their own homes, rising cement prices can also mean that construction has to be delayed, reduced in scope or completed in stages.
This is particularly significant at a time when Nigeria is already dealing with a major housing affordability challenge.
Construction Costs and Housing Affordability
High cement prices can create a chain reaction across the housing market.
Higher cement prices → higher construction costs → higher house prices → reduced affordability.
The impact can also affect government housing programmes and private developers trying to deliver homes at lower prices.
Even where land and financing are available, escalating construction costs can make it harder for developers to maintain the prices originally planned for a project.
That makes the FCCPC investigation particularly relevant to Nigeria’s housing sector.
What Happens Next?
The FCCPC said the investigation will continue as it examines the structure of Nigeria’s cement market and the factors influencing retail prices.
The commission’s eventual findings could determine whether further regulatory or enforcement measures are required.
For consumers and the construction industry, the central question is straightforward: are Nigeria’s high cement prices a consequence of legitimate costs, or is competition in the market being restricted?
The answer could have significant implications for construction costs and housing affordability across the country.
