Agora Policy Analysis Reveals Market Power Driving High Cement Prices in Nigeria

The Agora Policy analysis on Nigeria's cement industry indicates that the persistently high cement prices in the country are primarily due to market power and weak competition rather than high operating costs. Led by Waziri Adio, the think tank's report warns that the current market dynamics undermine housing delivery, infrastructure development, and long-term economic growth.

Despite Nigeria achieving self-sufficiency in cement production, the benefits have not translated into affordable prices for consumers. Major producers like Dangote Cement, Lafarge Africa, and BUA Cement continue to post exceptionally high profit margins, with an average core operating profit margin of 49% in September 2025.

The report points out that the industry's structure, including oligopolistic dominance and excess capacity, contributes to the sustained high prices. Agora Policy questions why Nigerian producers export cement at lower prices than those sold domestically, raising concerns about market structure and pricing power.