This study explored the impact of backward integration policy and deregulation onmanufacturing and importation of cement in Nigeria between 1999 and 2012. Weinterrogated the following research questions: Did the backward integration policyincrease the output of cement in Nigeria between 1999 and 2012? Did the deregulation ofcement manufacturing industries increase the contribution of the sub-sector to Nigeria’seconomic development between 1999 and 2012? Did the restriction of license to importcement in Nigeria lead to the empowerment of the local cement producers between 1999and 2012? Did importation of cement account for the rising cost of the product in Nigeriabetween 1999 and 2012? The study was anchored on some basic propositions emanatingfrom the Marxian political economy theory. Data for this study was collected through thetriangulation of qualitative methods of data collection which includes primary andsecondary data from written descriptions, face-to-face elite interview with a total ofthirteen interviewees and indirect observation of the cement market dominance and pricefluctuations at different intervals. The study found that; the backward integration policyon cement increased the output of cement tin Nigeria: the deregulation of cementmanufacturing industries did not increase the contribution of the sub-sector to Nigeria’seconomic development; the restriction of license to import cement in Nigeria has led tothe empowerment of the local cement producers; and importation of cement did notaccount for the rising cost of cement in Nigeria. we recommended among others for thereview of the backward integration policy and its import licensing system in order toaccommodate the interests of both manufacturers and importers in the industry;government should establish Cement Competition Commission to describe trends ofcompetition and punish offenders who brew falsehood about product output and scarcityin the industry and finally, government should set up a ‘Modernization Fund’ to revampcement technology and thereby equip the sector to create more jobs and increase standardof living.