Cement Cheaper in Kenya, Tanzania, Togo Despite Nigeria’s Excess Capacity — FCCPC

The Federal Competition and Consumer Protection Commission has opened a further investigation into possible manipulation of cement prices in Nigeria following a three-month study of the sector.

The commission said its preliminary findings suggested that the prevailing prices of cement could not be fully explained by market conditions, despite Nigeria’s substantial limestone deposits and installed production capacity.

The investigation was conducted by the FCCPC’s Anticompetitive Practices Department following widespread complaints over the rising cost of cement.

In a statement issued on Tuesday by the commission’s Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC said the study compared Nigeria’s cement market with those of Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria and Togo.

The study examined limestone availability, population, production capacity, consumption and retail prices across the countries.

“Findings from an industry-wide investigation conducted by the Federal Competition and Consumer Protection Commission suggest possible manipulation of prices of cement in the Nigerian market,” the commission said.

The FCCPC said the findings represented the preliminary outcome of a 40-page field report compiled from the three-month cross-border study.

According to the commission, 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.

It noted that despite the reported excess capacity and Nigeria’s status as a net exporter of cement to neighbouring countries, domestic prices had continued to rise.

The commission said market intelligence showed that the price of a 50kg bag of cement increased from between N9,300 and N9,700 in January to between N10,500 and N13,000 by mid-year.

By July, the product was selling for between N13,000 and N15,000 in some parts of the country.

The FCCPC said its findings also showed that cement was being sold at lower prices in some other African markets.

In Kenya, where the population is about 58.6 million and cement demand was estimated at 9.3 million metric tonnes in 2025, a 50kg bag sold for about $5.40, equivalent to N7,344.

In Tanzania, with a population of about 66.3 million and similar cement demand, the product sold for about $4.80, equivalent to N6,528.