In the first three quarters of 2025, Three of Nigeria's leading cement manufacturers, Dangote Cement (Dangote Cement Plc), BUA Cement (BUA Cement Plc) and Lafarge Africa (Lafarge Africa Plc), achieved revenues of 4.79 trillion naira. This represents an increase of 32.3% from N3.62 trillion in the same period in 2024. This growth was driven by higher sales volumes, improved operational efficiency and a stable currency.
Specifically, Dangote Cement's revenue reached N3.15 trillion, up 23% from N2.56 trillion in the same period in 2024; BUA Cement's revenue reached N858.73 billion, up 47% from N583.41 billion in 2024; Lafarge Africa's revenue reached 780.5 billion naira, up 662.77% from 479.5 billion naira in 2024.
According to THISDAY, the average retail price of cement in the first three quarters of 2025 was N10,000 per bag. The price increases are due to higher energy costs, higher manufacturing costs due to raw material shortages, and higher diesel prices, poor road conditions, the depreciation of the naira against the US dollar and increased demand from large-scale construction projects, both private and government-led.
Experts predict that cement prices are likely to remain high in 2025 due to double-digit inflation, rising energy costs and continued demand for housing. However, the government's efforts to stabilize the economy and promote local production may help control extreme price volatility before the end of the year.
Despite the challenge of high operating costs, the total operating expenses (including selling and distribution costs and administrative expenses) of the three companies reached N929.88 billion in the first three quarters of 2025, up 21.8% from N763.25 billion in the same period of 2024. Among them, Dangote Cement contributed 75.5%, and its operating expenses increased from N610.31 billion in 2024 to N702.96 billion.
Despite the challenges, the three companies posted a pre-tax profit of N1.69 trillion in the first three quarters of 2025, up 200.97% from N562.5 billion in the same period of 2024.
Commenting on the results, Yusuf Binji, managing director and chief executive of BUA Cement, said in a statement: These results reflect continued strong profitability, with gross margin and EBITDA margin rising to 50% and 46.4%, respectively, for the nine-month period. Further building on the success of the cost efficiency initiatives we implemented during the period. In addition, operating profit and after-tax profit increased by 165% and 492% respectively over the same period last year, highlighting the improvement of the company's operating performance and profitability. The company has strengthened its financial foundation and achieved a healthier financial position. The improvement reflects disciplined cost management, efficient asset utilization and reduced debt exposure. We believe the initiatives introduced in the second quarter are sustainable and will enable the company to continue its operational excellence and long-term growth.
Lafarge Africa's chief executive, Lolu Alade-Akinyemi, also said the company's strong performance reflected increased sales volumes, improved operational efficiency and a stable currency. The results for the first three quarters of 2025 continue the momentum of previous quarters, and the latest results further highlight the group's cost discipline, strategic market positioning and operational excellence, he said. He noted that in the three-month period ending September 2025, the company's sales volume increased by 43%, operating profit increased by 107%, and net profit after tax reached 75 billion naira. "For the nine-month period, net sales and operating profit were up 63% and 129%, respectively," he said. These results reaffirm Lafarge Africa's resilience, supported by continued volume growth, efficiency gains, innovative products and a relatively stable operating environment.
Meanwhile, Nigeria's cement market is expected to grow by 8.4% annually to reach $1.44 billion by 2025, a report has revealed. The country's cement market achieved a compound annual growth rate of 9.4% during 2020-2024, the report said. Growth momentum is expected to remain positive and the market is expected to expand at a CAGR of 7.9% during 2025-2029. "The cement market is expected to expand from a value of $1.33 billion in 2024 to approximately $1.96 billion by the end of 2029," the report added. Abigail Alabi, Sub-Saharan Africa industrial products analyst
at Vetiva Research, highlighted the impact of pricing strategies, sentiment and expansion initiatives on the cement sector. Cement companies are likely to continue to face cost challenges in 2025, with diesel prices and operating expenses remaining the main focus, she noted. There is a silver lining, however, as some businesses are turning to compressed natural gas (CNG) to drive cost-saving initiatives that could ease the price spike.
The industry has also made significant progress in expansion, with key players such as Holcim exiting the market and new entrants such as Huaxin entering. Huaxin's acquisition of Waco aligns with the latter's environmental and green product focus, offering prospects for operational improvement. In Nigeria, Lafarge is leading environmental initiatives with environmentally friendly products, and its expansion plans are aimed at enhancing production capacity. Other key players such as Dangote Cement are also preparing for expansion by adding capacity to existing plants and entering new markets such as Ivory Coast and Ghana. The growth trajectory of the sector has been further boosted
with the preparation of the African Continental Free Trade Area (AfCFTA) agreement, which will enhance trade between Nigeria and other African countries. Market sentiment has been positive, with investors actively seeking investment opportunities in the equity and fixed income markets. The report added: The bullish trend since the start of the year suggests that the hunger for significant gains continues. Despite pricing challenges and market uncertainties, Nigeria's cement industry is poised for an interesting and promising year.
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