August 19, 2025/CSL Research
Nigeria’s cement sector posted a strong recovery in Q1 2025, with GDP growth accelerating to 4.94%, up significantly from 1.44% in Q1 2024. This improvement mirrors broader gains in related industries, particularly the construction sector, which rebounded with a 6.21% growth rate, compared to a 0.52% contraction in the same period last year.
The rebound underscores the relative stability in 2025, contrasting with the disruptions and volatility that weighed on the industry in 2024.This momentum was evident in the financial results of listed cement producers in H1 2025. Aggregate revenue rose 30.97% y/y to ₦3.17tn, from ₦2.42tn in H1 2024. Growth was largely driven by sector-wide price adjustments, with some players also benefiting from higher sales volumes.
A key challenge that plagued the cement sector in H1 2024 was the significant foreign exchange (FX) losses, which totalled ₦261.20bn. However, in line with expectations, cement producers reported zero FX losses in H1 2025—a sharp turnaround driven by improved FX market stability and effective hedging strategies. This, coupled with strong Revenue growth and disciplined cost management, led to robust increase in profit across the industry. BUA Cement’s Pre-tax Profit jumped 435.3% year-on-year to ₦214.80bn, Dangote Cement’s rose by 149.2% to ₦730.03bn, and Lafarge Africa posted a 328.3% increase to ₦199.74bn.
We expect Nigeria’s cement sector to maintain strong growth for the rest of 2025, with producers well-positioned for sustained profitability. This positive outlook is driven by resilient demand and ongoing price adjustments. Volume growth should be bolstered by increased capital expenditure, rising private sector involvement, and government-led infrastructure projects. In addition, improved foreign exchange stability and effective hedging strategies are likely to prevent the FX losses seen in prior years. With cost-saving measures already in place, cost pressures are expected to remain manageable. Overall, the sector’s strong fundamentals and favourable operating environment support continued robust GDP growth in subsequent quarters.
Click here to download full report: CSL Nigeria Daily – 19 August 2025 – Cement .pdf
