Nigerians are paying more than double for cement compared to consumers in Kenya and Tanzania, despite Nigeria having Africa’s largest limestone deposits and production capacity that far outstrips domestic demand, a new federal investigation has revealed.
After three months of cross-border probing, the Federal Competition and Consumer Protection Commission (FCCPC) said Tuesday that preliminary evidence points to possible price manipulation in the cement sector—a finding that has prompted a full-scale inquiry into whether major producers are colluding to keep prices artificially high.
The commission’s 40-page field report paints a stark picture: a standard 50kg bag of cement retails for approximately N7,344 in Kenya, N6,528 in Tanzania, and N9,180 in Togo—a country with no limestone reserves of its own. Meanwhile, Nigerians are forking out between N13,000 and N15,000 for the same bag, with prices having climbed steadily from N9,300–N9,700 in January 2026.
The numbers defy basic market logic, according to the FCCPC. Nigeria’s cement plants have the capacity to churn out 60 to 65 million metric tonnes annually, yet the country consumes only 25 to 30 million metric tonnes. The nation is also a net exporter to its neighbours.
“The Commission’s concern 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,” the FCCPC said in a statement.
The investigation examined seven African markets including Kenya, Tanzania, South Africa, Egypt, Morocco, Algeria, and Togo. Researchers weighed factors like limestone availability, population sizes, production capacity, consumption patterns, and retail prices across borders.
Perhaps the most startling revelation is Togo. Despite having no limestone deposits—the primary raw material for cement production—the country sells cement at N9,180 per bag, nearly N4,000 cheaper than Nigeria.
This raises an uncomfortable question: If a country with no limestone can price cement competitively, why can’t Nigeria, which sits on vast limestone reserves?
Cement manufacturers have offered familiar explanations for Nigeria’s soaring prices: rising energy costs, a depreciating naira, expensive imported machinery and spare parts, and hefty transportation expenses.
But the FCCPC isn’t buying these excuses at face value. The commission says it is now stress-testing these claims against hard data on actual production costs, capacity utilisation, and real market conditions.
“The weight of preliminary findings provides sufficient grounds for the investigation to continue,” the commission stated.
With three dominant players—Dangote Cement, BUA Cement, and Lafarge Africa (now HBM Nigeria Plc)—controlling over 90% of installed capacity, the market structure itself invites scrutiny. The FCCPC has now issued formal summonses to key industry players, demanding detailed records on pricing methodologies, production figures, capacity utilisation, export data, and commercial relationships.
The probe’s next phase will determine whether prices are being driven by genuine cost pressures or by coordinated conduct, abuse of market power, deliberate restriction of domestic supply, or anti-competitive distribution practices.
FCCPC Executive Vice Chairman and CEO Tunji Bello moved to allay fears that the government is targeting legitimate business operations.
“Cement occupies a strategic place in the Nigerian economy. Its price affects the cost of building a home, developing commercial property, delivering public infrastructure and, ultimately, the cost of doing business,” Bello said.
“Businesses are entitled to make legitimate commercial decisions and earn returns on their investments. Competition law does not prevent that. 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.”
The investigation comes as Nigeria’s construction sector reels from escalating material costs. Builders and homeowners are bearing the brunt, with housing and infrastructure projects becoming increasingly unaffordable.
For millions of Nigerians already grappling with a cost-of-living crisis, the prospect that cement prices might be artificially inflated adds insult to injury. The FCCPC’s findings have now set the stage for a high-stakes confrontation with some of the country’s most powerful corporate players.
The commission has not given a timeline for the conclusion of its investigation, but has indicated that further findings will be made public as the inquiry progresses.
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