FCCPC Investigates Dangote, BUA, HBM Over Alleged Cement Price Fixing

By Adedapo Adesanya

The Federal Competition and Consumer Protection Commission (FCCPC) is set to investigate leading cement manufacturers over allegations of price manipulation in the Nigerian cement market.

The anti-trust agency has formally issued a Notice of Commencement of Investigation and Summons to Produce to major manufacturers in Nigeria’s cement industry following preliminary findings from a three-month cross-border study conducted by its Anticompetitive Practices Department. Some of Nigeria’s manufacturers include Dangote Cement, BUA Cement and HBM Nigeria, previously known as Lafarge Africa.

The investigation, according to a statement signed by the Director of Corporate Communications at FCCPC, Mr Ondaje Ijagwu, was initiated in response to persistent public complaints over the rapidly rising cost of cement.

The commission’s preliminary 40-page field report revealed a sharp increase in retail prices during the first half of 2026, where a 50kg bag selling for between N9300 and N9700 in January escalated to between N13,000 and N15,000 in several regions by July.

The FCCPC noted that Nigeria maintains an installed production capacity exceeding 60 to 65 million metric tonnes annually against an estimated domestic demand of roughly 25 to 30 million metric tonnes, creating a situation of significant excess installed capacity where downward price pressure would ordinarily be expected.

It also stated that cross-border comparative metrics across Sub-Saharan and North African markets revealed that retail prices in Nigeria remain significantly higher than in countries such as Kenya, Tanzania and Togo despite Togo lacking natural limestone deposits.

“Of particular concern to the commission 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 agency said.

While cement manufacturers have pointed to macroeconomic headwinds, including persistent Naira depreciation, rising energy expenses, transport logistics, and the inflated cost of imported industrial machinery spare parts, the FCCPC is actively auditing these claims against verified operational data.

Through the formal summons, the commission is legally requiring the affected entities to present comprehensive documentation detailing their pricing methods, factory capacity utilisation rates, export volumes, and distribution network agreements.