Dangote, BUA, Lafarge, Others Review Cement Prices as FCCPC Uncovers Rate Manipulation
- FCCPC investigates cement price manipulation amid rising costs despite abundant local production capacity
- Cement prices climbed sharply, reaching as high as N15,000 per 50kg bag by July
- Comparison with other African markets raises questions about Nigeria's higher cement prices
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Cement, BUA Cement and other major manufacturers are reviewing their pricing as the Federal Competition and Consumer Protection Commission (FCCPC) investigates possible manipulation in Nigeria’s cement market.
The Commission said on Tuesday, August 18, 2026, that its three-month industry-wide investigation uncovered concerns over the sharp rise in cement prices despite Nigeria’s huge limestone deposits, significant local production capacity and reported excess supply.
Source: Facebook
The preliminary findings are contained in a 40-page field report produced by the FCCPC’s Anticompetitive Practices Department following complaints about the high cost of cement.
According to the Commission, all major cement manufacturers made their records available except one. Publicly available estimates indicate that three major operators control more than 90 per cent of Nigeria’s installed cement production capacity.
Cement prices surge despite excess capacity
The FCCPC said its market intelligence showed cement prices climbing from about N9,300-N9,700 per 50kg bag in January to N10,500-N13,000 by mid-year, before reaching N13,000-N15,000 in some locations by July.
The findings have raised questions about why prices have continued to rise despite the country’s substantial production capacity.
Nigeria has installed cement production capacity estimated at more than 60-65 million metric tonnes annually, compared with domestic consumption of about 25-30 million tonnes.
The country is also a net exporter of cement to neighbouring markets.
The FCCPC said such significant excess capacity would ordinarily be expected to create competitive pressure and help moderate prices. Instead, prices have continued to rise, prompting deeper scrutiny of the industry.
Cement: FCCPC compares Nigeria with other markets
The Commission expanded its investigation beyond Nigeria, studying cement markets in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria.
Its findings showed that a 50kg bag of cement sells for about $5.40 (N7,344) in Kenya and $4.80 (N6,528) in Tanzania. In Togo, where there are no limestone deposits, the price was about $6.75 (N9,180).
The comparisons have intensified concerns over whether production costs and other market conditions fully explain Nigeria’s higher prices.
Commission seeks answers from manufacturers
FCCPC Executive Vice Chairman and CEO, Tunji Bello, said the investigation was necessary because cement prices directly affect housing, commercial property development, infrastructure and the wider cost of doing business, accoring to a report by Vanguard.
He stressed that the Commission was not seeking to dictate how companies operate but to establish whether the market is functioning competitively and whether consumers are benefiting.
Source: Getty Images
The FCCPC has issued Notices of Commencement of Investigation and Summons to Produce to key industry players. The manufacturers are expected to provide information on pricing methods, production, capacity utilisation, exports and commercial relationships.
The next phase will determine whether current prices are justified by legitimate costs and market conditions or whether there is evidence of coordinated pricing, abuse of market power, restricted domestic supply or other anti-competitive practices, The Guardian reports.
If violations are established, the investigation could trigger stronger regulatory action in an industry whose prices have a direct impact on the cost of building homes and infrastructure across Nigeria.
Top cement makers post strong earnings
Legit.ng earlier reported that Nigeria's three largest listed cement manufacturers—Dangote Cement, BUA Cement, and HBM Nigeria—reported robust first-half 2026 earnings, driven by higher sales volumes, improved operational efficiency, and a more stable foreign exchange environment.
The sharp increase in cement prices, from between N9,300 and N9,700 per bag in January to an average of N10,500 to N13,000, also played a significant role in boosting the companies' revenues and profitability.
Source: Legit.ng
