FCCPC Investigates Cement Price Manipulation By Dangote, Others 

The Federal Competition and Consumer Protection Commission, FCCPC, has raised fresh concerns over the soaring price of cement in Nigeria, saying preliminary findings from its investigation suggest that the commodity’s prices may be subject to manipulation.

The commission’s disclosure has placed major cement manufacturers, including Dangote Cement and other industry players, under increased scrutiny as regulators seek to determine why cement prices remain high despite Nigeria’s substantial production capacity and abundant limestone deposits.

The agency said its Anticompetitive Practices Department conducted a three-month cross-border study following widespread complaints about the rising cost of cement. The investigation compared Nigeria’s market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

According to the commission, Nigeria has an installed cement production capacity of between 60 million and 65 million metric tonnes annually, while domestic consumption is estimated at only 25 million to 30 million tonnes.

Ordinarily, such excess capacity would be expected to create competitive pressure and help moderate prices. Instead, the commission observed that cement prices had continued to climb.

A 50kg bag of cement, which sold for between N9,300 and N9,700 in January, reportedly rose to between N10,500 and N13,000 by mid-year, with prices reaching N13,000 to N15,000 in some parts of the country by July.

The price disparity became more striking when the FCCPC compared Nigeria with other African markets.

In Kenya, where the population is about 58.6 million and cement demand was estimated at 9.3 million tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to approximately N7,344.

In Tanzania, the same quantity sold for about $4.80, or N6,528, while in Togo, which the FCCPC noted has no limestone deposits, cement retailed at about $6.75, equivalent to N9,180.

The findings have therefore prompted the commission to question why Nigeria’s enormous production capacity and local availability of limestone have failed to translate into lower prices for consumers.

Cement manufacturers and other industry stakeholders have attributed the high prices to a combination of rising energy costs, naira depreciation, expensive imported machinery and spare parts, as well as transportation and logistics expenses.

But the FCCPC said it was not prepared to accept those explanations without verification.

The commission said it was testing the claims against information on actual production costs, pricing structures, capacity utilisation and prevailing market conditions.

It said the next phase of the investigation would determine whether cement prices were the result of legitimate commercial costs or whether anti-competitive practices were also involved.

Among the issues under investigation are possible coordinated conduct among industry players, abuse of market power, restriction of domestic supply and anti-competitive distribution practices.

To advance the probe, the FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key players in the cement industry, demanding records covering pricing methodologies, production levels, capacity utilisation, exports and commercial relationships.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the investigation was necessary because of the strategic importance of cement to the Nigerian economy.

He noted that the price of cement directly affects the cost of housing, commercial property, public infrastructure and, ultimately, the cost of doing business.

Bello, however, stressed that the investigation was not an attempt to dictate how companies should operate or prevent them from making legitimate profits.

Rather, he said the commission’s responsibility was to ensure that prices and other market outcomes were determined by genuine competition rather than practices that unlawfully restrict competition.