Cement costs more in Nigeria than Kenya, Tanzania as FCCPC probes pricing

Nigeria's cement market is under scrutiny as the Federal Competition and Consumer Protection Commission (FCCPC) investigates widespread complaints about rising prices. Preliminary findings from a three-month investigation indicate that cement costs in Nigeria are comparatively higher than in several other African markets, including Kenya and Tanzania.

The FCCPC's Anticompetitive Practices Department conducted a cross-border study examining factors like limestone availability, population, production capacity, and domestic consumption. Their initial findings raise concerns about possible price manipulation within Nigeria's cement sector, questioning whether current prices are fully justified by market conditions.

Data shows a sharp increase in cement prices within Nigeria. A 50kg bag that cost between 9,300 and 9,700 naira in January 2026 rose to between 10,500 and 13,000 naira by mid-year. By July, prices reportedly reached between 13,000 and 15,000 naira in some regions.

This price surge has significant implications for Nigeria's construction industry, impacting the cost of housing and infrastructure development. The situation is particularly concerning given Nigeria's substantial limestone resources and installed cement production capacity, estimated at 60 to 65 million metric tons annually against a domestic consumption of 25 to 30 million metric tons. Nigeria is also a net exporter of cement and clinker to neighboring markets, further highlighting the apparent excess capacity that should theoretically exert downward pressure on prices in a competitive market.