March 4, 2025/CSL Research

In 2024, Nigeria’s cement sector experienced a slowdown in annual GDP growth, declining to 2.37% from 3.08% in 2023. This downturn reflected broader trends in related industries, with real estate growth falling to 0.79% from 1.68% the previous year and construction growth dropping to 1.14% from 3.57%.

These declines were driven by economic challenges such as high energy costs, foreign exchange devaluation, inflation, and other macroeconomic pressures. Despite the slowdown, the cement sector recorded strong revenue growth, supported by increased government capital expenditure (CAPEX) and rising private-sector activity.

In 2024, major cement producers—BUA Cement, Dangote Cement, and Lafarge Africa (WAPCO)—reported significant foreign exchange losses totalling approximately N365.70 billion, a 43.36% increase y/y. Despite these losses, the companies demonstrated resilience, with strong revenue growth driving profitability. BUA Cement’s Pre-tax Profit surged by48.2% y/y, reaching N99.63 billion, up from N67.23 billion in FY 2023. 

Dangote Cement also recorded a 32.4% increase in Pre-tax Profit, rising to N732.54 billion from N553.10 billion in the previous year. Similarly, Lafarge Africa’s Pre-tax Profit grew strongly, up 89.0% y/y, climbing to N152.52 billion in FY 2024 from N80.70 billion in FY 2023.

In 2025, Nigeria’s cement sector is expected to remain resilient, with strong y/y growth driven by increased capital expenditure (CAPEX) and anticipated expansion in real estate and construction. Top-line growth will likely be supported by higher prices and volumes. Foreign exchange losses are projected to decline, while inflationary pressures are expected to ease, creating a more favourable environment for profitability. As a result, the outlook for cement companies’ profitability in 2025 appears increasingly positive.

Click here to download full report: CSL Nigeria Daily – 04 March 2025 – Cement.pdf​​​​​​​​​