New Cement Price Shock: FCCPC Turns Up Heat on Dangote, BUA, Others
- Cement producers in Nigeria are under a massive amount of pressure from Nigeria's regulatory authority, the FCCPC, after discovering industry-wide price discrepancies
- The FCCPC said it conducted a three-month intensive investigation across Africa and found that Nigerians were paying N5,700 more on cement prices than other African countries
- The regulator has summoned the top cement producers across the country, with experts speculating that prices may soon fall due to FCCPC's findings
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Competition and Consumer Protection Commission (FCCPC) has deepened its scrutiny of Nigeria’s cement industry as the price of a 50kg bag climbs beyond ₦15,000 in some locations, raising fresh concerns about the cost of building homes and doing business.
The regulator has issued formal Notices of Commencement of Investigation and Summons to Produce to major cement manufacturers, including Dangote Cement, BUA Cement and HBM Nigeria, formerly Lafarge Africa.
Source: Facebook
The move follows a three-month cross-border assessment that raised preliminary concerns about possible price manipulation and other anti-competitive practices.
The FCCPC stressed, however, that the investigation is still ongoing and has not established wrongdoing by the companies.
Why ₦15,000 cement is raising eyebrows
The sharp price movement has become harder to ignore because Nigeria has one of Africa’s largest cement industries, with installed production capacity estimated at more than 60 million to 65 million metric tonnes annually.
Domestic consumption, however, is estimated at only about 25 million to 30 million tonnes, meaning the country has substantial capacity beyond its estimated local demand. Nigeria is also a net exporter of cement to neighbouring countries.
For the FCCPC, that creates a critical question: why has excess capacity failed to translate into cheaper cement for Nigerian consumers?
The commission’s market intelligence showed that a 50kg bag sold for about ₦9,300 to ₦9,700 in January 2026. By mid-year, prices had risen to between ₦10,500 and ₦13,000, while some locations recorded ₦13,000 to ₦15,000 by July.
More recent reports indicate that Dangote Cement has crossed ₦15,000 in some markets, adding fresh pressure on builders and prospective homeowners.
Nigeria pays more than some African markets
The FCCPC’s cross-border comparison adds another layer to the controversy.
In Nairobi, Kenya, the commission found a 50kg bag selling for about $5.40, equivalent to ₦7,344 using its conversion.
Tanzania was placed at about $4.80 or ₦6,528, while Togo, which does not have significant limestone deposits, was reported at $6.75 or ₦9,180.
Nigeria’s higher prices are therefore difficult for the regulator to explain solely through raw-material availability.
Manufacturers face a tougher question
The FCCPC is now demanding detailed information on pricing methodologies, production levels, capacity utilisation, exports and commercial relationships.
Industry participants have cited rising energy costs, naira depreciation, expensive imported machinery and spare parts, transportation and logistics as factors pushing up prices.
But the regulator wants to test those explanations against verified financial, production and market data, according to a report by The Nation.
There is also a more immediate supply-side explanation. Some industry operators have linked recent price spikes to temporary scarcity, including plant maintenance and restrictions affecting access to some depots, rather than a fresh official price increase by manufacturers.
That distinction could prove crucial to the investigation.
Housing crisis adds pressure
For ordinary Nigerians, the debate is bigger than cement.
Building-sector operators say erratic cement prices are already feeding into construction costs, property prices and rents, potentially making home ownership even more difficult.
They have urged the FCCPC to conclude its investigation and publish its findings while encouraging stronger competition and greater transparency in the market.
Source: Getty Images
The FCCPC’s next task is therefore clear: determine whether the price increases are justified by legitimate costs and market conditions or whether coordinated conduct, abuse of market power, supply restrictions or other anti-competitive practices are involved.
Until that answer emerges, one uncomfortable reality remains: Nigeria has the limestone, the factories and the capacity, yet Nigerians are still paying a premium for cement, Leadership reports.
FCCPC unveils Nigerian cement price
Legit.ng earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) has opened a major investigation into Nigeria’s cement industry, questioning why prices remain significantly higher than in several other African countries despite the country’s huge limestone reserves and substantial production capacity.
The commission has summoned major cement manufacturers, including leading industry players, as it examines whether the current price of cement is being driven by genuine production costs or possible anti-competitive practices.
Source: Legit.ng
