Nigeria’s top listed cement manufacturers—Dangote Cement, Lafarge Africa, and BUA Cement—have reported a combined pre-tax profit of N984.432 billion for the 2024 financial year, reflecting a 45.93% surge from N674.574 billion recorded in 2023. The remarkable growth was fueled by strong demand, strategic price adjustments, and ongoing infrastructure expansion across the country.
Cement prices soared in 2024, with a single bag selling for as high as N8,000 amid inflationary pressures and macroeconomic reforms. Despite economic challenges, the sector witnessed increased production and expansion efforts, solidifying its position as a key driver of Nigeria’s construction and infrastructure industry.
– Dangote Cement posted a pre-tax profit of N732.537 billion, marking a 32.33% increase from N533.104 billion in 2023.
– Lafarge Africa recorded a significant 93.27% growth in pre-tax profit, reaching N152.265 billion from N78.781 billion.
– BUA Cement saw its profit before tax climb by 48.20% to N99.630 billion, up from N67.228 billion in 2023.
The industry’s total production capacity reached *62.8 million metric tons per annum (MMTPA)as of mid-2024, spread across five geopolitical zones. Cement producers have continued expanding manufacturing facilities, with a keen focus on export opportunities to sustain long-term growth.
David Adonri, Vice President of Highcap Securities Limited, highlighted that the booming demand for cement is closely tied to Nigeria’s infrastructure expansion. “The strong performance of cement companies can be attributed to increased government infrastructure projects and private sector construction. Strategic price adjustments also played a role in sustaining profitability despite inflation and rising operational costs,” he said.
Ambrose Omordion, Chief Operating Officer of InvestData Consulting Limited, emphasized that strategic pricing decisions helped cement firms navigate economic volatility. “Despite economic challenges, cement manufacturers remained profitable by leveraging price increases and cost-management strategies,”he noted.
Looking ahead, analysts at Comercio Partners anticipate a favorable 2025 outlook for the industry. The expected reduction in interest rates by the Central Bank of Nigeria could lower borrowing costs, benefiting capital-intensive industries such as cement production. Additionally, inflation stabilization is expected to ease operational costs, improving profit margins.
Arvind Pathak, CEO of Dangote Cement, noted that the company closed 2024 on a strong note. “Our volumes grew by 1.6% year-on-year, reaching 27.7 million tonnes. In Nigeria, efficiency improvements fueled sales growth by 7.9%,” he said. Dangote Cement is also transitioning to compressed natural gas (CNG) trucks to cut costs and enhance profitability.
Lolu Alade-Akinyemi, CEO of Lafarge Africa, described 2024 as a record-breaking year for the company. “We achieved revenue of N697 billion and a profit after tax of N100 billion. Despite challenges, we remained resilient, focusing on operational efficiency, cost management, and sustainability,” he stated.
Alade-Akinyemi remains optimistic about 2025, predicting continued growth in Nigeria’s infrastructure and construction sector. “We expect market recovery to maintain its momentum. Our focus remains on maximizing volume opportunities, managing costs, and driving sustainability through innovative building solutions,”he added.
With Nigeria’s infrastructure push and urbanization trends driving demand, cement manufacturers are positioning themselves for sustained growth. Industry players are banking on policy reforms, improved forex stability, and cost-saving initiatives to maintain profitability in 2025. If inflation and operational costs remain controlled, the sector could witness another year of strong financial performance.
