March 11, 2025/CSL Research

In 2024, the Nigerian cement industry experienced remarkable topline growth, with the total Revenue of all listed players surging by 67.68% y/y to N5.15 trillion, compared to N3.07 trillion in 2023. The strong Revenue growth was driven by both price and volume increases. Dangote Cement, the industry leader, played a pivotal role in this growth, with its Revenue climbing by 62.2% y/y to N3.58tn from N2.21tn in FY 2023. This remarkable growth underscores Dangote Cement’s dominant position in the market.

BUA Cement, the second-largest producer in Nigeria, also showed strong topline growth, with Revenue rising by 90.5% y/y to N876.47bn from N460.00bn in FY 2023. Similarly, Lafarge Africa reported a 71.8% y/y Revenue growth to N696.76bn in FY 2024 from N405.50bn in the prior period. The Revenue growth among cement producers reflects an overall increase in demand for cement, driven by heightened capital expenditure (CAPEX) and expanded private-sector activities. With the government prioritizing infrastructure projects in 2025, demand for cement is expected to remain strong, supporting continued growth in the industry. Additionally, increased real estate and construction activities are anticipated to further drive cement demand.

Despite strong demand, the Nigerian cement sector encountered substantial challenges in the period under review due to macroeconomic pressures, particularly high inflation and the depreciation of the Naira. The sector’s Cost of Goods Sold (excluding depreciation) surged by 77.42% y/y to N2.33 trillion in FY 2024, up from N1.31 trillion in 2023, largely driven by soaring input costs. Operating Expenses (excluding depreciation) also saw a sharp increase, up by 68.08% y/y to N1.01 trillion, up from N602.51 billion in 2023, as inflationary pressures impacted operational costs. The depreciation of the Naira exacerbated these challenges, resulting in significant foreign exchange losses for the three listed cement companies, which totalled approximately N365.70 billion, a 43.36% increase y/y.

Despite these rising operating costs and FX losses, the sector demonstrated resilience, with strong Revenue growth driving profitability. BUA Cement’s Pre-tax Profit surged by 48.2% 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 by a remarkable 89.0% y/y, climbing to N152.52 billion in FY 2024 from N80.70 billion in FY 2023. Looking ahead, Revenue growth for cement companies is expected to remain strong in 2025, primarily driven by increased sales volumes amid rising cement demand. Additionally, cement prices are likely to continue reflecting prevailing macroeconomic conditions, providing further support for Revenue growth in the industry. Foreign exchange losses are projected to decline, while inflationary pressures are expected to ease. As a result, the outlook for cement companies’ profitability
in 2025 appears increasingly positive.

Click here to download full report: CSL Nigeria Daily – 11 March 2025 – Cement .pdf​​​​​​​​​