Cement Prices In Africa: Report Shows Nigeria Produces More Cement Than It Consumes

The Federal Competition and Consumer Protection Commission (FCCPC) has claimed that Nigeria presently produces more cement than it consumes.

The commission asserted this in a 40-page field report compiled after a three-month cross-border study by the Anticompetitive Practices Department (ACP), Naija News reports.

According to the report, the country presently has an installed cement production capacity of more than 60 million to 65 million metric tonnes annually.

However, estimated domestic consumption is only between 25 million and 30 million metric tonnes per year. FCCPC noted that Nigeria is also a net exporter of cement to neighbouring countries.

According to the agency, the excess production capacity should ordinarily put downward pressure on prices in a competitive market.

However, it said this had not happened, raising questions about the way the market operates.

The FCCPC said, “The level of excess production capacity was a particular concern because it had not translated into downward pressure on domestic prices, as would ordinarily be expected in a competitive market.”

Suspected Price Manipulation

The FCCPC report also noted that a recent survey showed possible cement price manipulation in the Nigerian market.

The Director of Corporate Affairs at the FCCPC, Ondaje Ijagwu, said the development was discovered following a series of complaints over the high cost of cement, a major component of the Nigerian construction industry.

“Concerns were raised over the comparatively high retail price of cement in Nigeria compared with other markets, despite the country’s substantial limestone deposits, significant domestic production capacity and reported surplus installed capacity relative to domestic consumption,” Ijagwu noted in a statement on Tuesday, August 18, 2026.

“Significantly, all the major cement manufacturers in the country cooperated with the Commission by making their records available except one of them.

“Publicly available estimates indicate that three major undertakings account for more than 90 per cent of installed production capacity in the country.”

In a bid to uncover the truth, the FCCPC said the ACP decided to carry out a survey in Kenya, Tanzania, South Africa, Egypt, Morocco and Algeria, considering factors including limestone availability, population, production capacity and domestic consumption.

The findings showed that Kenya, with a population of about 58.6 million, or 76 per cent lower than Nigeria’s, had an estimated domestic cement demand of 9.3 million metric tonnes per annum (MTPA) in 2025.

According to the FCCPC, the retail price of a bag of cement in Nairobi was $5.40 (₦7,344), noting that Kenya is endowed with limestone deposits.

In Tanzania, with a population of about 66.3 million, domestic cement demand was also estimated at 9.3 million MTPA in 2025, while a bag of cement was reported to sell for $4.80 (₦6,528).

“In Togo, a bag sells for $6.75 (₦9,180). Significantly, Togo does not have limestone deposits,” the Commission said.

“Comparatively, in Nigeria, market intelligence reviewed by the Commission shows that the retail price of a 50kg bag of cement rose significantly during the first half of 2026.

“A bag reportedly selling for between ₦9,300 and ₦9,700 in January was selling for between ₦10,500 and ₦13,000 by mid-year. By July, prices of between ₦13,000 and ₦15,000 were reported in some parts of the country.”

The report added: “Information provided by industry participants has identified energy costs, depreciation of the Naira and its effect on imported machinery and spare parts, as well as transportation and logistics costs, among the factors contributing to cement prices,” the statement reads.

“The Commission is testing these explanations against verified information on costs, production, pricing and market conditions.

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

The report noted that the subsequent phase of the investigation will ascertain whether the current cement prices can be justified by legitimate costs and market conditions, or if there is evidence of coordinated actions, abuse of market power, limitations on domestic supply, anti-competitive distribution practices, or any other behaviour that contravenes FCCPA.

Naija News reports that the FCCPC also announced that it has issued notices to commence the investigation and invitations to key industry players, mandating them to provide information and records concerning their pricing strategies, production and capacity utilisation, exports, and pertinent commercial relationships.

The Executive Vice-Chairman and Chief Executive Officer (CEO) of the FCCPC, Tunji Bello, also explained the rationale for the intervention, stating that the investigation underscores the Commission’s duty to scrutinise market conditions that have significant implications for consumers and the economy at large.

“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.

“When concerns persist about how such an important market is functioning, the Commission has a duty to look beyond assumptions and establish the facts,” Bello said.