By Peace Erewunmi

A fresh debate has emerged over the high cost of cement in Nigeria, with analysts and consumer advocates questioning why prices continue to rise despite the country’s production capacity exceeding domestic demand. The issue has renewed calls for stronger market regulation and increased competition in the cement industry.

Nigeria is one of Africa’s largest cement producers, with major manufacturers operating large-scale plants across the country using locally available limestone as the primary raw material. However, despite this production surplus, retail prices of cement have continued to climb, with a 50kg bag selling for between ₦11,000 and ₦13,500 in many parts of the country.

Industry analysts argue that the high prices are not solely driven by production costs. They point to the highly concentrated nature of the cement market, where a few dominant manufacturers control the overwhelming majority of production. According to experts, this market structure limits competition and gives producers significant pricing power.

Cement manufacturers, on the other hand, maintain that the rising prices reflect Nigeria’s challenging business environment. They cite high energy costs, expensive transportation, exchange rate pressures, taxes, financing costs, and logistics challenges as major factors increasing production expenses.

The continued increase in cement prices has had widespread economic consequences. Developers say it has significantly raised the cost of housing and infrastructure projects, forcing many individuals to suspend building plans while increasing the prices of new homes and rental properties. Contractors have also warned that public infrastructure projects now require larger budgets to achieve the same results.

Consumer groups and industry stakeholders have called on the Federal Government to strengthen oversight of the sector. Among the proposals are encouraging more investment in cement production, reviewing policies that limit competition, improving regulatory supervision, and ensuring that pricing remains fair to consumers while allowing manufacturers to operate profitably.

Some analysts have also urged the Federal Competition and Consumer Protection Commission (FCCPC) to continue monitoring the industry to determine whether any anti-competitive practices are contributing to persistent price increases. They argue that greater transparency in pricing and production costs would improve public confidence and help address concerns about affordability.

As discussions continue, experts agree that affordable cement is critical to reducing Nigeria’s housing deficit, expanding infrastructure, and supporting economic growth. They believe that balancing industrial development with healthy market competition will be essential to making cement more accessible to millions of Nigerians.