The cost of a 50kg bag of cement in Nigeria has surged by as much as N5,700 since January 2026, prompting the Federal Competition and Consumer Protection Commission (FCCPC) to open a formal investigation into suspected price manipulation. According to the FCCPC's preliminary 40-page field report, prices rose from between N9,300 and N9,700 per bag in January to between N13,000 and N15,000 in several regions by July 2026.
FCCPC Issues Formal Summons to Major Cement Manufacturers
The FCCPC's Director of Corporate Communications, Ondaje Ijagwu, confirmed in a signed statement that the probe was triggered by persistent public complaints over the rapid cost increases. The commission's Anticompetitive Practices Department conducted a three-month cross-border study before issuing a Notice of Commencement of Investigation and Summons to Produce, directed at major cement manufacturers, including Dangote Cement, BUA Cement, and HBM Nigeria (formerly Lafarge Africa).
Under the summons, these companies must submit detailed records covering their pricing methods, factory capacity utilisation rates, export volumes, and distribution network agreements.
Capacity Gap at the Heart of Concerns
A central issue driving the FCCPC's scrutiny is the wide gap between Nigeria's production capacity and domestic demand. The country's installed cement production capacity stands at between 60 and 65 million metric tonnes annually, while estimated domestic demand is only about 25 to 30 million metric tonnes. The agency stated: "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."
Cross-border comparisons found that retail cement prices in Nigeria are significantly higher than those in Kenya, Tanzania, and Togo. Manufacturers have attributed rising costs to naira depreciation, higher energy bills, transport expenses, and the increased cost of imported machinery and spare parts, as reported by Punch.
Verification and Government Pressure
The FCCPC said it is verifying these claims against actual operational data and will use the findings to determine whether price increases are justified by genuine production costs or driven by anti-competitive behaviour. Earlier, the Federal Government called on cement producers to review their prices downward amid growing concerns over the rising cost of the building material. The government said the sharp increase was affecting infrastructure projects and putting additional pressure on the cost of executing contracts. The minister also disclosed that his ministry had faced growing demands to adjust existing contracts as contractors struggled with higher cement costs.
