Nigeria Cement Prices Probed as Regulator Summons the Biggest Producers
NIGERIA · MARKETS
Key Facts
—The action: The Federal Competition and Consumer Protection Commission has opened a formal inquiry into Nigeria cement prices, issuing a Notice of Commencement of Investigation and Summons to Produce to the country’s major cement manufacturers. It was announced on Tuesday 18 August.
—The price path: A 50kg bag sold for NGN 9,300 to NGN 9,700 in January 2026, about US$7. It reached NGN 10,500 to NGN 13,000 by mid-year and NGN 13,000 to NGN 15,000 in some regions by July, up to about US$11.
—The paradox: Installed capacity is put at around 65 million tonnes a year against domestic consumption of 25 to 30 million tonnes. The commission says Nigeria is a net exporter of cement to neighbouring markets.
—The comparison: The commission cites a bag at about US$5.40 in Kenya and US$4.80 in Tanzania. Togo, which has no limestone deposits of its own, is put at about US$6.75.
—Who is named: The commission’s own statement names no company and refers only to “key players”. Business Post named Dangote Cement, BUA Cement and HBM Nigeria, formerly Lafarge Africa. The Nation listed the same three as the producers behind more than 90% of national capacity.
—One holdout: ThisDay reports that every major manufacturer cooperated with the underlying study except one. The commission has not identified that company.
—No finding yet: The commission says the preliminary findings are not a final determination of wrongdoing. Executive vice chairman and chief executive Tunji Bello says the aim is not to dictate commercial decisions. None of the three companies had responded publicly at the time of reporting.
Nigeria cement prices are now the subject of a formal competition investigation. The country’s antitrust regulator summoned the dominant producers on Tuesday 18 August, demanding pricing methods, capacity utilisation rates, export volumes and distribution agreements after a three-month cross-border study.
Why Nigeria cement prices drew the regulator in
The Federal Competition and Consumer Protection Commission built its case on a 40-page industry-wide field report and a three-month cross-border study by its Anticompetitive Practices Department. The work began after complaints about the cost of cement.
The question it set out to answer is uncomfortable for the industry. Nigeria has abundant limestone, more plant capacity than it can absorb, and retail cement prices well above the other African markets the commission examined.
A 50kg bag moved from NGN 9,300 to NGN 9,700 in January, to NGN 10,500 to NGN 13,000 by mid-year, and to between NGN 13,000 and NGN 15,000 in parts of the country by July, according to the commission’s figures. At about 1,350 naira to the dollar in mid-August, that is a move from roughly US$7 a bag to as much as US$11.
The commission’s own regional comparison is the sharper point. It puts a bag at roughly US$5.40 in Kenya, or NGN 7,344, and US$4.80 in Tanzania, or NGN 6,528. Those conversions imply a rate of 1,360 naira to the dollar, which the commission does not state outright. Both countries used about 9.3 million tonnes of cement in 2025.
The Togo test
The most awkward benchmark in the commission’s file is Togo. The commission notes that Togo has no limestone deposit of its own, yet a bag there is put at about US$6.75, or NGN 9,180.
That comparison is designed to close off the usual defences. Energy costs, logistics and the price of imported inputs are real pressures, but they do not obviously explain a gap of this size against a country with no domestic raw material at all.
Nigerian producers have historically pointed to gas supply, diesel for haulage and the cost of imported spares. Those arguments will now be tested against documents rather than in public.
What the summons actually demands
Under the notice, the recipients must produce detailed records of their pricing methods, factory capacity utilisation rates, export volumes and distribution network agreements. Each of those four categories is chosen with care.
Pricing methods and capacity utilisation together show whether plants are being run below capacity while prices rise. Export volumes reveal how much output is leaving a market said to be short of supply.
Distribution agreements are the least discussed and often the most revealing. Competition authorities elsewhere have found that pricing discipline is enforced at the depot and dealer level rather than in the boardroom.
Three companies, one market
The commission’s statement, signed by its director of corporate affairs Ondaje Ijagwu, names no company at all. It refers to “key players in the cement industry”. Business Post went further and named Dangote Cement, BUA Cement and HBM Nigeria, the former Lafarge Africa, in its headline. The Nation listed the same three as the producers behind more than 90% of national output. ThisDay carried the statement in full and named none of them.
Publicly available estimates put their combined share above 90% of installed capacity: about 35.3 million tonnes a year for Dangote Cement in Nigeria, 17 million for BUA Cement and 10.5 million for HBM Nigeria. All three are listed on the Nigerian Exchange, where the former Lafarge Africa now trades as HBMNG after dropping the old WAPCO ticker.
One detail has drawn less attention than it deserves. ThisDay reports that all major manufacturers cooperated with the underlying investigation except one, and the commission has not said which.
A refusal to cooperate with a preliminary study is not itself evidence of anything. It does tend to shape how a regulator approaches the formal stage.
The timing is not neutral
The summons lands while the Dangote group is marketing its refinery to investors. Dangote Petroleum Refinery filed for a listing with Nigeria’s Securities and Exchange Commission on 4 August, seeking about US$5 billion, and on 18 August it secured a US$1 billion underwriting programme. Attention on the wider group’s pricing power is not welcome in that window.
It also cuts against a central claim of the current reform programme. Removing fuel subsidies and unifying the exchange rate were meant to restore price discipline, and cement is a visible test of whether that has happened.
For anyone holding Nigerian equities, the read-across is straightforward enough. Cement has been one of the most reliably profitable sectors on the exchange, and a regulator now wants to know why.
What happens next, and what has not happened
Nothing has been proven. The commission has stated plainly that the preliminary findings are not a final determination of wrongdoing, and executive vice chairman and chief executive Tunji Bello says competition law does not stop firms earning a return on their investments.
The companies must now produce the documents, after which the commission decides whether to escalate. The Federal Competition and Consumer Protection Act 2018 gives the commission its summons power under section 33, and failing to produce documents without sufficient cause carries up to three years in prison or a fine of up to NGN 20 million, about US$15,000. Proven abuse of a dominant position exposes a company to a fine of at least 10% of its turnover in the preceding business year. No case has yet been brought.
None of the three named producers had responded publicly at the time of reporting. Their answers, when they come, will be the next real development in this story.
Frequently Asked Questions
Why is Nigeria investigating cement prices?
The Federal Competition and Consumer Protection Commission found indications of possible price manipulation after a three-month cross-border study. It has summoned the country’s major manufacturers to produce pricing and capacity records.
How much has cement risen in Nigeria in 2026?
A 50kg bag sold for NGN 9,300 to NGN 9,700 in January 2026, about US$7. By July it reached NGN 13,000 to NGN 15,000 in some regions, or as much as US$11, according to the commission’s figures.
Which companies received the summons?
The commission named no company, referring only to “key players”. Business Post named Dangote Cement, BUA Cement and HBM Nigeria, the former Lafarge Africa, and The Nation listed the same three as the producers behind more than 90% of capacity. ThisDay carried the statement without naming any of them.
Has any wrongdoing been established?
No. The commission says the preliminary findings are not a final determination of wrongdoing, and none of the companies had responded publicly at the time of reporting.
Connected Coverage
Nigeria’s industrial base has been drawing capital even as input costs bite, from a solar-powered steel plant billed as sub-Saharan Africa’s largest to the refining push that saw Dangote overtake the United States as Europe’s top jet fuel supplier. The wider contest for African industry and resources is the subject of our key topic, Africa: The New Scramble, and more from the region sits on our Western Africa page.
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