Cement Companies in Nigeria Record N3.2 Trillion Revenue in H1 2025 Amid Soaring Prices and Strong Demand
Story written by Uzuh Rita
Lagos, Nigeria – July 28, 2025 – Nigeria’s top three listed cement manufacturers—Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc—collectively generated a staggering ₦3.2 trillion in revenue during the first half (H1) of 2025, representing a 97.78% increase compared to ₦1.6 trillion in the same period of 2024.
The impressive growth was driven by rising cement prices, surging private sector construction, and government infrastructure projects, according to a market analysis conducted by THISDAY.
Average Cement Price Hits ₦10,000 Per Bag
In H1 2025, the average retail price of a 50kg bag of cement reached ₦10,000 in major southwestern states like Ogun and Lagos. Market analysts attributed the price surge to several factors:
- Escalating energy and diesel costs
- Deteriorating road networks increasing distribution costs
- Depreciation of the Naira against the US Dollar, affecting import costs
- High demand from both public and private sector construction projects
Industry experts predict that cement prices may remain elevated throughout 2025 due to persistent inflation, high energy costs, and strong housing demand. However, there is optimism that economic stabilization policies and increased local production could help moderate price volatility in the latter half of the year.
Dangote Cement Leads with Over N2 Trillion Revenue
- Dangote Cement Plc posted ₦2.07 trillion in H1 2025 revenue, marking a 119.7% increase from ₦942.71 billion in H1 2024.
- BUA Cement Plc recorded ₦580.3 billion revenue, rising 59.4% from ₦363.9 billion in the previous year.
- Lafarge Africa Plc earned ₦516.98 billion, up 74.9% from ₦295.58 billion in H1 2024.
Lafarge Africa reported continued momentum in Nigeria’s infrastructure sector, maintaining a positive outlook for the remainder of 2025, despite macroeconomic headwinds.
“We expect the market to maintain its growth trajectory and will continue to explore volume opportunities while driving cost efficiency and sustainability,” the company stated.
Profits Before Tax Soar by Over 200%
The combined profit before tax (PBT) for the three cement giants stood at an estimated ₦1.14 trillion, reflecting a 201.4% surge compared to ₦379.7 billion in H1 2024:
- Dangote Cement: ₦730.03 billion PBT (up 149.2%)
- BUA Cement: ₦214.8 billion PBT (up 435.3%)
- Lafarge Africa: ₦199.74 billion PBT (up 328.3%)
Yusuf Binji, Managing Director/CEO of BUA Cement, credited the strong performance to margin recovery, cost efficiency, and focused execution.
“Our margins have returned to sustainable levels. We remain well-positioned to build on this momentum and deliver further value in the coming quarters,” he said.
Nigerian Cement Market to Reach $1.44 Billion in 2025
A ResearchAndMarkets report projects that Nigeria’s cement industry will grow by 8.4% in 2025, reaching $1.44 billion, up from $1.33 billion in 2024. The sector grew at a CAGR of 9.4% between 2020–2024 and is expected to maintain a 7.9% CAGR through 2029, potentially hitting $1.96 billion by 2029.
Sector Trends and Sustainability Initiatives
According to Vetiva Research’s Sub-Saharan Africa analyst Abigail Alabi, high diesel prices and operational expenses remain critical concerns for cement manufacturers in 2025. However, some companies are adopting Compressed Natural Gas (CNG) to reduce costs and offset future price hikes.
- Lafarge Africa continues its push for eco-friendly products, launching ECOPlanet cement in western Nigeria in Q2 2025, which now accounts for over 50% of regional sales.
- The company is also increasing use of Calcined Clay, a low-carbon alternative, to cut CO₂ emissions in line with its ‘Accelerating Green Growth’ strategy.
Meanwhile, Dangote Cement is expanding operations within Nigeria and into new African markets like Ghana and Côte d’Ivoire, positioning itself for long-term continental growth.
Outlook for 2025 and Beyond
With preparations underway for the African Continental Free Trade Area (AfCFTA), Nigerian cement producers are poised to capitalize on cross-border trade opportunities. Investor sentiment remains bullish, as the sector continues to attract both equity and fixed-income investments.
Despite inflationary pressures and operational challenges, the cement industry in Nigeria is set for continued growth in 2025, supported by strong demand, ongoing infrastructure investments, and strategic market expansions.
