Cement Hits ₦15,000: FCCPC Demands Answers From Dangote, BUA, Other Producers

Apparently miffed by the escalating cost of cement the Federal Competition and Consumer Protection Commission (FCCPC), recently issued a summon to major cement manufacturers in the country as part of probes in the industry to determine why the retail price of the product is way higher than what obtains in other Africans countries.

Three companies account for more than 90 per cent of Nigeria’s cement production including: Dangote Cement Plc, HMB Nigeria Plc, formerly known as Lafarge Africa Plc. and BUA Cement Plc. ExploringAfrican Heritage

According to the FCCPC the probe followed an extensive industry-wide investigation that suggested possible manipulation of product prices in the Nigerian market.

The FCCPC stated that findings from a three-month cross-border study by its Anti-competitive Practices Department (ACP), undertaken in response to widespread public complaints over the high cost of cement, provided reasonable ground for probe of the cement manufacturers.

In the statement declaring the summon tagged, “Notices of Commencement of Investigation and Summons to Producer” it was directed at the key players in the sector.

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Expectedly, with the summon, the companies are required to provide information and records relating to, among other matters, their pricing methodologies, production and capacity utilisation, exports and relevant commercial relationships.

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FCCPC stated that its actions were sequel to concerns raised over the comparatively high retail price of cement in the local market compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption.

The commission explained that, beyond Nigeria, its investigations extended to markets in sub-Saharan Africa like Kenya, Tanzania and South Africa as well as Egypt, Morocco and Algeria, using metrics such as availability of limestone, the basic raw material for cement production, as well as other variables such as population, production capacity and consumption.

The FCCPC statement reads: “Of particular concern to the Commission is that this level of production capacity has not resulted in the downward pressure on domestic prices that might ordinarily be expected in a competitive market with substantial excess capacity.”

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Executive Vice Chairman and Chief Executive Officer (EVC\CEO) of the commission Mr. Tunji Bello said: “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.”

The FCCPC spokesman provided additional details on the findings from the ACP investigation.

He said: “For instance, Kenya with 58.6 million population, 76 per cent lower than Nigeria’s population, had domestic cement demand of approximately 9.3m metric tonne per annum (MTPA) in 2025. Retail price in Nairobi is $5.40 or N7,344. Kenya is endowed with limestone.

“Tanzania, with population of 66.3 million, 72 per cent lower than Nigeria’s population, had domestic cement demand of 9.3m MTPA by 2025 with a bag of cement selling for $4.80 or N6,528.

“In Togo, which does not have limestone deposit, a bag of cement sells for $6.75 or N9,180.

“However, in Nigeria, with its huge limestone deposit and installed capacity, market intelligence reviewed by the commission showed that the retail price of a 50kg bag of cement rose significantly during the first half of 2026.

“A cement bag selling for between N9,300 and N9,700 in January was selling for between N10,500 and N13,000 by mid-year and by July, prices had risen to between N13,000 and N15,000 in some parts of the country.”

According to him, “Next is to 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 contrary to the provisions of the FCCPA.

According to Bush Radio Academy, the commission’s action was prompted by growing concerns over the sharp rise in the retail price of cement in Nigeria compared with prices in several other African countries.

The major companies affected by the investigation include Dangote Cement Plc, HMB Nigeria Plc, formerly known as Lafarge Africa Plc, and BUA Cement Plc. Together, the three firms account for more than 90 per cent of cement production in Nigeria.

The FCCPC said the investigation followed a three-month cross-border assessment carried out by its Anti-competitive Practices Department in response to widespread complaints from Nigerians over the high cost of cement.

The commission said the study raised concerns about possible factors contributing to the unusually high prices of cement in the Nigerian market and provided sufficient grounds for a formal investigation.

In its Notices of Commencement of Investigation and Summons to Producer, the FCCPC directed the major manufacturers to provide detailed information and records concerning their pricing structures, production levels, capacity utilisation, exports and relevant commercial relationships.

The commission explained that its assessment covered Nigeria and other countries, including Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria. The study considered factors such as limestone availability, population, cement production capacity and domestic consumption.

According to the FCCPC, Nigeria has significant limestone deposits and substantial cement production capacity, including installed capacity reportedly exceeding domestic demand. However, the high level of production has not translated into lower prices for consumers.

The commission noted that cement prices in some African countries were considerably lower despite some of those markets having smaller populations and, in certain cases, fewer natural resources for cement production.

It disclosed that Kenya, with a population of about 58.6 million, recorded domestic cement demand of approximately 9.3 million metric tonnes per annum in 2025, while a 50kg bag of cement sold for about $5.40, equivalent to approximately N7,344 based on the commission’s assessment.

Similarly, Tanzania, with a population of about 66.3 million, recorded cement demand of roughly 9.3 million metric tonnes per annum in 2025, with a 50kg bag selling for around $4.80, or approximately N6,528.

In Togo, where limestone deposits are reportedly unavailable, a 50kg bag of cement was said to sell for about $6.75, equivalent to approximately N9,180.

By comparison, the FCCPC said its market intelligence showed that the price of a 50kg bag of cement in Nigeria increased substantially during the first half of 2026. A bag that sold for between N9,300 and N9,700 in January reportedly rose to between N10,500 and N13,000 by the middle of the year, before reaching between N13,000 and N15,000 in some parts of the country by July.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the commission considered cement a critical commodity because its price directly affects housing construction, commercial property development, public infrastructure and the overall cost of doing business.

Bello explained that the investigation was intended to establish whether the prevailing prices could be justified by legitimate production costs and market conditions or whether there were indications of coordinated pricing, abuse of market dominance, restrictions on domestic supply, anti-competitive distribution practices or other conduct prohibited under the Federal Competition and Consumer Protection Act.

The FCCPC stressed that the investigation is aimed at establishing the facts surrounding the rising cost of cement and determining whether the market is operating in a genuinely competitive manner.