Dealers Increase Cement Price by N5,700, FG Confirms New Cost for 50kg
- The cost of a 50kg cement bag has risen from as low as N9,300 in January to as high as N15,000 in some regions by July 2026
- The FCCPC formally summoned major cement manufacturers after a three-month study by its Anticompetitive Practices Department flagged pricing concerns
- Nigeria's cement production capacity far exceeds domestic demand, yet prices remain higher than those in Kenya, Tanzania and Togo
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerians buying cement are now paying up to N5,700 more per 50kg bag than they were at the start of 2026, as the Federal Competition and Consumer Protection Commission opens a formal investigation into suspected price manipulation across the country's cement sector.
Prices tracked in the FCCPC's preliminary 40-page field report rose from between N9,300 and N9,700 per bag in January to between N13,000 and N15,000 in several regions by July.
Source: UGC
The commission'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.
FCCPC Issues Formal Summons
The commission's Anticompetitive Practices Department conducted a three-month cross-border study before the FCCPC issued a Notice of Commencement of Investigation and Summons to Produce, directed at major cement manufacturers.
Key players in Nigeria's cement industry include Dangote Cement, BUA Cement and HBM Nigeria, formerly known as 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 what Nigeria can produce and what it actually consumes.
The country's installed cement production capacity stands at between 60 and 65 million metric tonnes annually, while estimated domestic demand runs at only about 25 to 30 million metric tonnes.
The agency said:
"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 carried out as part of the study found that retail cement prices in Nigeria are significantly higher than those recorded in Kenya, Tanzania and Togo.
Punch reports that manufacturers have attributed rising costs to naira depreciation, higher energy bills, transport expenses and the increased cost of imported machinery and spare parts.
Source: Getty Images
The FCCPC said it is verifying these claims against actual operational data and will use the findings to determine whether the price increases are justified by genuine production costs or driven by anti-competitive behaviour.
FG urges cement manufacturers to cut prices
Earlier, Legit.ng reported that the Federal Government had 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 in cement prices 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 the higher cost of cement.
Source: Legit.ng
