Nigeria: Agora Policy has blamed market concentration for the high price of cement in the country. In a report published in early February 2026 it concluded that, “…the industry operates as a spatially fragmented oligopoly where price leadership, regional dominance, and control of critical inputs have neutralised the competitive discipline expected from surplus capacity.” It acknowledged that input costs such as taxes, negative currency exchange rates, energy prices and transport fees also played a role.
The report noted that Nigeria achieved formal self-sufficiency in cement production in 2012 and that installed production capacity now exceeds domestic demand. The sector had benefited historically from import restrictions, tax incentives, access to foreign exchange, and exclusive mining rights before 2012. However, the report said that subsequently “the market has consolidated into a highly concentrated oligopoly with persistently high prices and margins, raising legitimate questions about whether infant-industry policies have outlived their purpose.”
Agora Policy said that domestic cement prices have remained high with “industry profitability consistently above levels observed across Sub-Saharan Africa and comparable emerging markets.” It stated that cement producers in Nigeria reported average profit margins of approximately 49% in September 2025 compared to 20 - 36% in North America, 15 - 25% in Asia, 20 – 30% in Europe and 18 – 30% elsewhere in Africa.
The think tank has recommended that government policy should shift from capacity expansion to competition enhancement. It suggests treating “logistics as a tool for market integration, limestone mineral access as a lever for fair competition and regional dominance as a legitimate target for antitrust scrutiny.” It argued that its proposed reforms are ‘essential’ to realign private profitability with the public interest.
