The Federal Competition and Consumer Protection Commission (FCCPC) has opened a further investigation into Nigeria cement prices, after a three-month cross-border study found that cement is sold more cheaply in countries including Kenya, Tanzania and Togo despite Nigeria’s substantial production capacity and limestone deposits.

The investigation was announced on Tuesday, 18 August 2026, following widespread complaints about the rising cost of cement and preliminary findings by the FCCPC’s Anticompetitive Practices Department.

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The commission said its 40-page field report raised concerns that current cement prices in Nigeria may not be fully explained by prevailing market conditions.

Nigeria has installed cement production capacity estimated at between 60 million and 65 million metric tonnes a year, while domestic consumption is estimated at about 25 million to 30 million tonnes.

Despite the apparent excess capacity, the FCCPC said the price of cement in the domestic market has continued to rise.

A 50kg bag that sold for about ₦9,300 to ₦9,700 in January 2026 had climbed to between ₦10,500 and ₦13,000 by the middle of the year, according to the commission.

By July, prices had reached between ₦13,000 and ₦15,000 in some parts of Nigeria.

The commission’s cross-border comparison has added a significant new dimension to the debate.

According to the FCCPC, a 50kg bag of cement in Nairobi, Kenya, sold for approximately $5.40, equivalent to ₦7,344 based on the exchange rate used in its report.

Kenya has a population of about 58.6 million and recorded domestic cement demand of approximately 9.3 million metric tonnes in 2025. Like Nigeria, Kenya also has limestone deposits.

In Tanzania, where the population is about 66.3 million and cement demand was also estimated at around 9.3 million tonnes in 2025, a 50kg bag sold for about $4.80, or ₦6,528.

The comparison with Togo was particularly notable for the commission. A 50kg bag reportedly sold for approximately $6.75, or ₦9,180, despite the FCCPC noting that Togo does not have limestone deposits.

The figures have prompted the commission to question why Nigeria’s considerable raw-material resources and installed production capacity have not translated into lower domestic prices.

The FCCPC said cement manufacturers and other industry participants had identified several factors behind the price increases, including high energy costs, naira depreciation, the cost of imported machinery and spare parts, transportation and logistics.

The commission said it was now testing those explanations against verified data on production costs, pricing, capacity utilisation and wider market conditions.

“The weight of preliminary findings provides sufficient grounds for the investigation to continue,” the FCCPC said.

The investigation will examine whether cement prices are the result of legitimate commercial costs or whether other practices may be influencing the market.

Among the issues under examination are possible coordinated conduct, abuse of market power, restrictions on domestic supply and anti-competitive distribution arrangements.

The FCCPC has consequently issued Notices of Commencement of Investigation and Summons to Produce to key industry players.

The companies have been asked to provide information covering pricing methodologies, production levels, capacity utilisation, exports and commercial relationships.

The commission said the exercise is not intended to dictate how cement manufacturers set prices or prevent companies from making legitimate profits.

FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the importance of cement to the economy made it necessary to establish what was driving its price.

“Cement occupies a strategic place in the Nigerian economy,” Bello said, noting that its price affects housing, commercial property, public infrastructure and the wider cost of doing business.

Bello said competition law did not prevent companies from making profits or taking legitimate commercial decisions.

“Its purpose is to protect the competitive process, so that prices, output and other market outcomes are determined by genuine competition rather than conduct that unlawfully restricts it,” he said.

The FCCPC’s findings come at a difficult time for Nigeria’s construction industry. The sustained increase in cement prices has raised the cost of building homes, commercial properties and public infrastructure, placing additional pressure on developers and households.

The investigation could therefore have wider implications beyond cement manufacturers and distributors.

If the commission establishes that legitimate production and operating costs account for the price increases, the findings could provide greater clarity for the industry.

If, however, investigators uncover evidence of anti-competitive conduct, the outcome could lead to regulatory action and potentially reshape how cement is supplied and priced in Nigeria.

For now, the FCCPC has stressed that its findings are preliminary.

The comparison with Kenya, Tanzania and Togo has raised serious questions, but the ongoing investigation will determine whether those differences are evidence of unlawful market behaviour or the result of other economic and commercial factors.

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The probe is consequently likely to attract close attention from manufacturers, builders, developers and millions of Nigerians affected by the rising cost of construction.