FCCPC Probes Possible Cement Price Manipulation as Prices Hit N15,000

The Federal Competition and Consumer Protection Commission (FCCPC) has launched an investigation into possible price manipulation in Nigeria’s cement market, after a three-month study found that prices rose significantly in the first half of 2026 despite substantial domestic production capacity.

According to the Commission, a 50kg bag that sold for N9,300-N9,700 in January rose to N10,500-N13,000 by mid-year, with prices reaching N13,000-N15,000 in some areas by July.

The FCCPC said Nigeria has installed cement production capacity of more than 60 million to 65 million metric tonnes annually, compared with estimated domestic consumption of 25 million to 30 million tonnes.

Three major undertakings account for more than 90 per cent of installed capacity.

The Commission said producers cited energy, foreign exchange, machinery and logistics costs as factors behind the price increases, but it is testing those explanations against verified market data.

Explaining the basis for the Commission’s intervention, FCCPC Executive Vice Chairman/Chief Executive Officer Tunji Bello said the investigation reflects the Commission’s responsibility to examine market conditions that have significant consequences for consumers and the wider economy.

“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business. When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” Bello said.

He explained that competition scrutiny is not intended to dictate the commercial decisions of businesses.

Rather, its purpose is to determine whether the market is functioning competitively and whether consumers are receiving the benefits that effective competition should provide.

“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. That distinction is important to the work we are undertaking,” he said.

The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key industry players, seeking information on pricing, production, capacity utilisation, exports and commercial relationships.

The probe will determine whether the prices reflect legitimate costs or possible coordinated conduct, abuse of market power or other anti-competitive practices.