Cement Shock: Nigeria Produces Almost Twice What It Consumes – FCCPC

The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over the persistent increase in cement prices in Nigeria despite the country having significantly higher production capacity than domestic demand.

According to Ireporter Online, the commission disclosed this in a 40-page field report produced after a three-month cross-border investigation conducted by its Anticompetitive Practices Department.

The report estimated that Nigeria currently has an installed cement production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is put at approximately 25 million to 30 million metric tonnes per year.

The commission noted that Nigeria also exports cement to neighbouring countries, meaning the country has substantial excess production capacity. Under normal competitive market conditions, the FCCPC said such surplus should ordinarily contribute to lower prices.

However, the commission expressed concern that the excess capacity has not translated into cheaper cement for Nigerian consumers.

The FCCPC said its preliminary findings raised questions about the structure and operation of the domestic cement market and warranted further investigation.

The commission’s Director of Corporate Affairs, Ondaje Ijagwu, said the investigation followed growing complaints over the high cost of cement, which remains a major input in Nigeria’s construction sector.

He explained that the commission had compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, examining factors such as limestone deposits, population, production capacity and domestic demand.

The findings showed that Kenya, with a population of about 58.6 million, had estimated cement demand of 9.3 million metric tonnes in 2025, while a 50kg bag reportedly sold for about $5.40. Tanzania, with a population of approximately 66.3 million, also recorded estimated demand of 9.3 million metric tonnes, with a bag selling for about $4.80.

The commission further stated that a 50kg bag of cement reportedly sold for about $6.75 in Togo, despite the country having no significant limestone deposits.

In Nigeria, however, the FCCPC said market data showed that cement prices rose sharply during the first half of 2026. A 50kg bag reportedly sold for between ₦9,300 and ₦9,700 in January before rising to between ₦10,500 and ₦13,000 by the middle of the year. By July, prices of between ₦13,000 and ₦15,000 were reported in some parts of the country.

The commission said industry participants had identified energy costs, naira depreciation, expenses associated with imported machinery and spare parts, as well as transportation and logistics, as some of the factors responsible for the rising prices.

However, the FCCPC said it was testing those explanations against verified information on production costs, pricing, capacity utilisation and broader market conditions.

The commission disclosed that most of the major cement manufacturers cooperated with the investigation by providing relevant records, while one major player had yet to do so.

It also noted that three major companies account for more than 90 per cent of Nigeria’s installed cement production capacity, highlighting the concentration of the industry.

The FCCPC said the next phase of the investigation would determine whether prevailing cement prices are justified by genuine production and distribution costs or whether there is evidence of price coordination, abuse of market dominance, restrictions on domestic supply, anti-competitive distribution practices or other violations of competition laws.

The commission has consequently issued investigation notices and invited key industry players to submit information concerning their pricing structures, production levels, capacity utilisation, exports and relevant commercial relationships.

FCCPC Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the intervention was necessary because cement plays a critical role in the economy and its price directly affects housing, infrastructure development and the cost of doing business.

He stressed that the commission would examine the available evidence to determine how the cement market is functioning and whether consumers are being subjected to unfair pricing practices.