Kayode Tokede

On the back of higher sales volumes, improved operational efficiency, and enhanced currency stability, three leading cement makers in Nigeria, Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc generated N4.79 trillion revenue in nine months of 2025.

This represents a 32.3 per cent increase over N3.62 trillion generated by the three companies in the corresponding period of 2024.

A breakdown of the N4.799 trillion revenue showed that Dangote Cement generated N3.15 trillion, about 23 per cent increase over N2.56 trillion reported in nine months of 2024. BUA Cement saw its revenue reach N858.73 billion, representing an increase of 47 per cent over N583.41billion in 2024, while Lafarge Africa declared N780.5 billion revenue, about 662.77 per cent increase over N479.5 billion reported in the same period in 2024.

According to an investigation by THISDAY, the average price of cement in nine of 2025 sold at N10,000 per bag at retail price.

The current price per bag is said to be influenced by rising energy costs and raw material scarcity that have increased manufacturing expenses. Other implications are higher diesel prices and road conditions, weakening of the Naira against the Dollar and massive construction projects (both private and government-led), fuelling increased demand.

Experts have predicted that the price of cement may remain high throughout 2025 due to double-digit inflation, rising energy costs, and continuous housing demand. However, government efforts to stabilise the economy and boost local production could help control extreme price fluctuations later in the year.

As gathered by THISDAY, the three companies were faced with high cost of operations, leading to total operating expenses (Selling and distribution costs & Administrative expenses) closed nine months of 2025 at N929.88 billion, about 21.8 per cent increase over N763.25billion in nine months of 2024.

Out of the N929.88 billion total operating expenses, Dangote Cement contributed 75.5 per cent with total operating expenses at N702.96 billion from N610.31 billion in 2024.

Despite challenges, the three firms generated profit before tax of N1.69 trillion in nine months of 2025, about 200.97 per cent increase over N562.5 billion reported in nine months of 2024.

Commenting on the results, the  Managing Director/ CEO, BUA Cement, Yusuf Binji in a statement said, “The results reflect consistently strong profitability, with gross margin and EBITDA margin for the nine-month period rising to 50per cent and 46.4per cent, respectively — further reinforcing the success of the cost-efficiency initiatives implemented during the period.

“Furthermore, operating profit and profit after tax increased by 165per cent and 492per cent, respectively, compared to the same period last year, underscoring the Company’s enhanced operational performance and profitability.

“The Company has strengthened its financial foundation, achieving a healthier statement of financial position.  This improvement reflects disciplined cost management, efficient asset utilisation, and reduced debt exposure.  We believe the initiatives introduced in the second quarter are sustainable and position the Company for continued operational excellence and long-term growth.”

Also, the Chief Executive Officer, Lafarge Africa, Lolu Alade-Akinyemi said the company’s strong performance reflected higher sales volumes, improved operational efficiency, and enhanced currency stability.

According to him, the nine-month results built on the momentum from previous quarters, with the latest results further highlighting the group’s cost discipline, strategic market positioning, and operational excellence.

He pointed out that within the three-month period ended September 2025, the company specifically saw a 43 per cent increase in sales, a double of 107 per cent growth in operating profit and net profit after tax of N75 billion.

He said: “For the nine-month period, net sales and operating profit grew by 63 per cent and 129 per cent, respectively. These results reaffirm Lafarge Africa’s resilience, supported by sustained volume growth, efficiency gains, innovative products, and a relatively stable operating environment.

Meanwhile, a report by Research and Markets disclosed that the cement market in Nigeria is expected to grow by 8.4 per cent annually to reach $1.44 billion in 2025.

According to the report, the cement market in the country recorded strong growth during 2020-2024, achieving a CAGR of 9.4 per cent. Growth momentum is expected to remain positive, with the market projected to expand at a CAGR of 7.9 per cent during 2025-2029.

“By the end of 2029, the cement market is projected to expand from its 2024 value of $1.33 billion to approximately $1.96 billion,” the report added.

A sub-Saharan Africa Industrial Goods analyst at Vetiva Research, Abigail Alabi, had highlighted the impact of pricing strategies, market sentiments, and expansion drives on the cement sector.

She noted that cement players are likely to continue facing cost challenges in 2025, with diesel prices and operating expenses remaining significant concerns. However, there is a silver lining as some players are shifting towards using CNG to drive cost-saving initiatives, potentially mitigating price spikes.

The sector also witnessed notable developments in terms of expansion, with key players like Holcim exiting the market and new entrants like Huaxin stepping in. Huaxin’s acquisition of Waco aligns with the latter’s focus on environmental sustainability and eco-friendly products, offering prospects for operational enhancements. In Nigeria, Lafarge is spearheading environmental sustainability initiatives by introducing eco-friendly products, while its expansion plans aim to bolster production capacity.

Other key players like Dangote Cement are also gearing up for expansion by increasing capacity at existing plants and venturing into new markets like Cote d’Ivoire and Ghana.

The industry’s growth trajectory is further fuelled by preparations for the African Continental Free Trade Area (AfCFTA) agreement, set to enhance trade between Nigeria and other African nations. Market sentiments have been positive, with investors actively seeking opportunities in both equity and fixed income markets.

“The bullish trend witnessed since the start of the year indicates a continued appetite for significant yields. Despite the pricing challenges and market uncertainties, the cement sector in Nigeria is poised for an interesting and promising year ahead,” the report added.