September 30, 2025/CSL Report
Nigeria’s cement sector posted a strong year-on-year rebound in Q2 2025, with GDP growth accelerating to 4.86%, up sharply from 1.68% in Q2 2024. The improvement was supported by gains in related sectors, particularly construction, which expanded by 5.27% compared with 4.20% a year earlier.
On a quarter-on-quarter basis, however, growth eased slightly from 4.94% in Q1 2025, reflecting a temporary dip in cement demand. Despite this, the sector’s overall recovery highlights the relative stability achieved in 2025, in contrast to the disruptions and volatility that weighed heavily on performance in 2024. This positive momentum was mirrored in the H1 2025 financial results of listed cement manufacturers.
Aggregate industry revenue rose 30.97% year-on-year to ₦3.17tn, compared with ₦2.42tn in H1 2024. The growth was largely driven by broad-based price increases, with some producers also benefiting from stronger sales volumes. In H1 2024, one of the biggest challenges for cement producers was steep foreign exchange (FX) losses, which reached ₦261.20bn. By contrast, in H1 2025, the industry recorded zero FX losses—a remarkable turnaround driven by greater stability in the FX market and the adoption of effective hedging strategies.
Combined with strong revenue growth and disciplined cost management, this shift fuelled a sharp rebound in profitability across the sector. BUA Cement’s Pre-tax Profit surged 435.3% year-on-year to ₦214.80bn, Dangote Cement recorded a 149.2% increase to ₦730.03bn, and Lafarge Africa reported a 328.3% jump to ₦199.74bn.
Nigeria’s cement sector is expected to sustain its growth momentum through the rest of 2025, with producers well-positioned to deliver strong profitability. This positive outlook is underpinned by resilient demand and ongoing price adjustments. Volume growth should be supported by higher capital expenditure, increased private sector participation, and government-driven infrastructure projects.
At the same time, continued stability in the foreign exchange market and the adoption of stronger hedging mechanisms are likely to prevent a recurrence of the FX losses seen in previous years. With cost-saving measures already implemented, input cost pressures are expected to remain manageable. Overall, the sector’s solid fundamentals and supportive operating environment point to continued robust contributions to GDP growth in the coming quarters.
Click here to download full report: CSL Nigeria Daily – 30 September 2025 – Cement .pdf
