Cement Cheaper In Kenya, Togo Than Nigeria -FCCPC Probe Finds

The Federal Competition and Consumer Protection Commission ( FCCPC), has flagged possible manipulation of cement prices in Nigeria following a three-month investigation into the rising cost of the building material.

The Commission said its preliminary findings showed that prevailing cement prices could not be fully explained by market conditions, prompting further investigations into possible anti-competitive practices in the sector.

The findings followed a cross-border study by the FCCPC’s Anticompetitive Practices Department, carried out in response to widespread complaints about the high cost of cement.

According to the commission, the study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

It examined factors including limestone availability, population, production capacity, consumption and retail prices.

The FCCPC said Nigeria has substantial limestone deposits and an installed cement production capacity estimated at between 60 million and 65 million metric tonnes annually, compared with domestic consumption of about 25 million to 30 million metric tonnes.

Despite the reported excess capacity and Nigeria’s position as a net exporter to neighbouring countries, the commission said domestic cement prices had continued to rise.

It said a 50-kilogramme bag of cement, which sold for between 9,300 and 9,700 naira in January, rose to between 10,500 and 13,000 naira by mid-year.

By July, prices had climbed to between 13,000 and 15,000 naira in some parts of the country.

The FCCPC also found that cement was being sold at lower prices in some other African markets.

In Kenya, where the population is about 58.6 million and domestic cement demand was estimated at 9.3 million metric tonnes in 2025, a 50-kilogramme bag sold for about 5.40 dollars, equivalent to roughly 7,344 naira.

In Tanzania, the same quantity sold for about 4.80 dollars, or approximately 6,528 naira.

In Togo, where the Commission said there are no limestone deposits, a 50-kilogramme bag retailed at about 6.75 dollars, equivalent to around 9,180 naira.

The Commission said the price disparity had raised questions about why Nigeria’s significant production capacity and abundant raw materials had not translated into lower domestic prices.

Industry players have attributed the high prices to factors including energy costs, the depreciation of the naira, imported machinery and spare parts, transportation and logistics expenses.

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

The Commission said the preliminary findings provide sufficient grounds for the investigation to continue.

The ongoing probe will determine whether cement prices are being driven by legitimate costs and market conditions or by anti-competitive practices.

The FCCPC said it would examine possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution practices.

It has issued notices of the commencement of investigations and summonses to key players in the cement industry, demanding records on pricing methods, production, capacity utilisation, exports, and commercial relationships.

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

He said cement prices affect the cost of housing, commercial property, public infrastructure and, ultimately, the cost of doing business.

Bello stressed that the investigation was not intended to dictate how companies operate or prevent them from making legitimate profits.

He said the objective was to protect the competitive process and ensure that prices and market outcomes are determined by genuine competition rather than unlawful practices.

The investigation comes amid growing pressure on Nigeria’s construction sector, where rising cement prices have increased the cost of housing and infrastructure projects nationwide.