Cement Producers Generate N3.2trn Revenue in H1 AmidProduct Price Spike

.Declare N1.14trn PBT

.Market projected to expand CAGR 7.9% 2025-2029

Kayode Tokede

Following the hike in price of cement fuelled by increasedprivate sector and government demands, three listed cement manufacturing companies on the Nigerian Exchange Limited (NGX) generated an estimated N3.2 trillion revenue in the first half of 2025.

The N3.2 trillion H1 revenue generated by Dangote Cement Plc, Lafarge Africa Plc and BUA Cement Plc is about 97.78per cent increase over N1.6 trillion generated in the first half of 2024.

THISDAY market research revealed that the average price of a bag of cement in H1 2025 was N10,000 at retail outlets in Ogun and Lagos states.

According to market sources, the cost per bag of cement is influenced by rising energy costs and raw material scarcity that have increased manufacturing expenses.

Specifically, higher diesel prices and road conditions that is making distribution more expensive; weakening of the Naira against the Dollar impacting negatively on the cost of imported materials used in cement production and massive construction projects (both private and government-led) increase demand, has been blamed for higher prices.

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

Meanwhile, analysis of the revenue showed that Dangote Cement during the period under review generated N2.07 trillion revenue, about 119.7 per cent increase over N942.71billion reported in H1 2024.

BUA Cement on its part, saw its revenue jumped to N580.3billion in H1, representing an increase of 59.44 per cent from N363.9 billion in H1 2024, while Lafarge Africa declared N516.98 billion revenue about 74.9 per cent increase over N295.58 billion reported in H1  2024. 

Lafarge Africa in a report noted that the Nigerian infrastructure and construction sector is projected to sustain its growth trajectory despite the  challenges posed by macroeconomic activities on purchasing power.

“Consequently, we uphold a positive outlook for the latter part of 2025, anticipating that the market will maintain a growth rate consistent with the trend from the first half of the year. We will continue to capitalize on volume opportunities across our  markets while diligently managing our costs.

“Our commitment to sustainability remains steadfast, as we  pursue our strategy of ‘Accelerating Green Growth’ through innovative building solutions that enhance  stakeholder value,” the company explained to investors.  

Despite challenges, the three firms generated an estimated N1.14 trillion profit before tax (PBT) in H1 2025, about 201.43 per cent increase over N379.7 billion reported in H1 2024.

A breakdown showed that Dangote Cement reported N730.03billion PBT, about 149.2 per cent increase over N292.96billion in H1 2024.

BUA Cement declared N214.8 billion PBT in H1 2025, about 435.3 per cent growth over N40.13 billion declared in H1 2024 while Lafarge Africa posted N199.74 billion PBT in H1 2025, representing an increase of 328.3 per cent increase over N46.6 billion reported in H1 2024.

The Managing Director/ CEO, BUA Cement, Yusuf Binji in a statement stated the company in H1 2025 delivered a strong performance, reflecting the Company’s continued growth momentum and operational resilience. 

“The results affirm the positive trajectory of the business and the confidence of stakeholders in its long-term value. When we started out at the beginning of the year, we were clear-eyed on our priorities, which were: margin  recovery and its sustenance, cost focus and efficiency, and market penetration. I am delighted with how  we have progressed on the first two. 

“Currently, our margins have returned to and being sustained at acceptable levels, and cost improvements are also being achieved. In the coming quarters, we remain well set up to consolidate on the gains achieved, advance the rest of our objectives and maintain our cost discipline,” Binji added.  

A report by ResearchAndMarkets 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 repoort, 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.

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,” she said.

Lafarge said it successfully launched ECOPlanet cement in the Western market in Q2, complementing the  earlier launch of the product in the Eastern market in 2024 and driving our commitment to a greener planet.

“This product accounts for over 50 per cent of our sales in the West since its launch, and is expected to further reduce our carbon footprint.  Lafarge Africa continues to drive the use of Calcined Clay, a low-carbon raw material, in its cement  manufacturing process, to further drive the reduction of our CO2 emissions and carbon footprint,” Lafarge stated in astatement.

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 fueled 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.