Nigeria's cement industry is facing new changes. Recently, MSM Group has further clarified that it is building a cement plant with an annual capacity of 12 million tons as planned. Located in Kebbi State, the project is part of the company's long-term investment strategy to diversify into manufacturing. Speaking at a press conference in Abuja, MSM Group Chairman Moazzam Mairawani revealed that the facility will be implemented in phases of US $600 million each.
MSM Group has been a key player in Nigeria's oil and gas sector since its inception in 2017, managing Oil Mining Leasehold No.98 (OML 98). Through strategic exploration, the company has increased its oil reserves from 118 million barrels to 244 million barrels in just six months, Mr Maillavani said. "Our growth has been driven by the technical expertise and experience of the team, many of whom have more than three decades of experience in the upstream arena," he explained. He also revealed that the company is launching an initial public offering (IPO) in the United States through MSM Frontier Capital Acquisition, which is expected to raise $225 million. The group plans to invest a total of $2.7 billion in various sectors in Nigeria.
At present, MSM has entered the cement manufacturing industry, and the market competition is becoming increasingly fierce. Over the years, there have been only three cement manufacturers in Nigeria's cement market, Dangote Nigeria (32.25 million tons per year, 50.2% of capacity), BUA Group (21.5 million tons per year, 33.5%) and Lafarge Africa Cement Co., Ltd. Dangote Cement and BUA Cement have been dominating the market, controlling supply and pricing power. However, the industry landscape is changing with new entrants. Earlier this year, Mangal Industries launched its own cement plant in Kogi State, becoming another challenger to the market giant. Industry analysts point out that once the Kaibi project of MSM is completed, it will further change the market by adding a lot of supply capacity and providing consumers with more choices. Demand for cement in
Nigeria has been high, driven mainly by urbanization, housing demand and infrastructure development. The entry of new entrants like MSM and Mangal is expected to lower consumer prices in the long run while creating thousands of jobs. The Central Bank of Nigeria (CBN) also sees the cement sector as an important part of diversifying the economy, helping to reduce reliance on imports and stabilising the naira. By expanding capacity, companies like MSM are not only competing for market share, but also contributing to Nigeria's broader economic growth agenda.
Industry observers believe the MSM's bold entry will accelerate competition and could even trigger another wave of price corrections, similar to the effects seen when BUA broke Dangote's near-monopoly years ago. "Nigeria's cement industry is entering a more competitive era with MSM, Mangal joining the fray against Dangote and BUA," noted an industry expert. This could be the beginning of a pricing revolution in the space.
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