Weak competition — not costs — driving high cement prices in Nigeria – Report

Weak competition and market concentration are driving up cement prices in Nigeria, despite surplus production capacity, according to Agora Policy, a Nigerian think tank.

In its latest policy insight, titled ‘Market Power and Failure of Competition Policy in Nigeria’s Cement Industry’, the non-profit said the structure of Nigeria’s cement market, rather than production costs, is the primary driver of persistently high prices.

The organisation said Nigeria, which achieved self-sufficiency in cement production as far back as 2012, now has installed capacity well above domestic demand, yet prices have remained elevated.This, the report said, had led to unusually high profit margins often posted by the three dominant producers: Dangote Cement, Lafarge Africa, and BUA Cement.

According to Agora policy, Nigeria’s cement producers recorded average operating profit margins of about 49 percent as at September 2025, up from around 30 percent in 2024.

This is significantly higher than margins recorded in other regions, including North America, Europe, Asia and most of sub-Saharan Africa, the report noted.

The non-profit said the contrast between excess capacity, high prices, and strong profitability suggests that market structure — not costs — is shaping pricing outcomes. Thecable