Cement Giants Post ₦1.64trn Profit as Nigerians Demand Lower Prices
Nigeria’s leading cement manufacturers delivered record-breaking profits in the 2025 financial year, collectively posting ₦1.64 trillion in earnings, even as consumers grapple with the soaring cost of cement now averaging ₦12,000 per bag.
Corporate disclosures filed on the Nigerian Exchange (NGX) show that Dangote Cement, BUA Cement, and Lafarge Africa recorded strong financial performance, underlining the resilience of the country’s cement industry amid rising construction demand and inflationary pressures across the economy.
However, the impressive earnings have reignited public debate over the affordability of building materials and the widening gap between corporate profitability and the realities facing ordinary Nigerians.
The Numbers Behind the Cement Boom
Among the three major producers, Dangote Cement remained the dominant industry player, reporting a net profit of ₦1.01 trillion, more than double the ₦503.25 billion recorded in 2024.
The company also posted revenue growth of 20.3 percent, rising to ₦4.31 trillion in 2025 compared with ₦3.58 trillion the previous year. After accounting for a tax charge of ₦517.74 billion, Dangote Cement’s bottom line crossed the trillion-naira threshold for the first time.
BUA Cement also delivered remarkable growth. The company reported profit after tax of ₦356.04 billion, a dramatic leap from ₦73.91 billion in 2024.
Its profit before tax surged to ₦465.28 billion from ₦99.63 billion, while operating profit climbed to ₦504.55 billion, reflecting improved operational efficiency and stronger margins.
BUA’s revenue increased to ₦1.18 trillion from ₦876.47 billion, supported by higher sales volumes and improved cost management.
Meanwhile, Lafarge Africa also recorded a strong financial year, with net sales rising 53 percent to ₦1.07 trillion from ₦696.76 billion in 2024.
The company’s profit before tax jumped to ₦411 billion, while profit after tax climbed 173 percent to ₦273.12 billion.
Together, the three companies generated combined profits of approximately ₦1.64 trillion, highlighting the cement sector’s central role in Nigeria’s industrial economy.
Consumers Under Pressure
Despite the industry’s strong performance, many Nigerians say the high price of cement is making housing construction increasingly difficult.
For prospective homeowners and small developers, cement is the most critical and expensive building input.
A civil servant, Tajudeen Lawal, who began constructing a two-bedroom bungalow in 2020, said the project had stalled because of the escalating cost of cement.
According to him, each time he saved money to resume construction, prices rose again, making it increasingly difficult to complete the building.
Similarly, Ayodele Fasuyi, a Lagos-based landlady, said rising cement prices had forced her to suspend several building projects.
In Ilorin, Funmilayo Olowoyo described the cost of constructing her three-bedroom house as “overwhelming,” noting that some builders now resort to alternative materials or scaled-down designs.
In extreme cases, some households are returning to traditional mud structures due to the rising cost of conventional building materials.
Shareholders and Policy Concerns
The debate is not limited to consumers.
Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), acknowledged the significant contributions of cement manufacturers to the Nigerian economy through employment, infrastructure development, and corporate social responsibility initiatives.
However, he stressed the need for government intervention to address the persistently high price of cement.
Igbrude noted that the pricing pattern among major producers suggests a form of market balance, where companies avoid significant price changes that might disrupt industry competition.
He also pointed to structural challenges, including high production costs, energy expenses, infrastructure gaps, and logistics constraints.
Beyond factory costs, he highlighted the role of middlemen in the supply chain, who often inflate prices between production plants and final consumers.
According to him, any meaningful reduction in cement prices would require addressing both production constraints and distribution inefficiencies.
He urged the Federal Competition and Consumer Protection Commission (FCCPC) to examine the situation and engage stakeholders across the value chain.
The Bigger Housing Challenge
Nigeria faces a housing deficit estimated at over 20 million units, making cement affordability a national development issue.
When cement prices rise sharply, the consequences ripple across:
- Housing construction
- Infrastructure development
- Real estate investment
- Urban expansion
This creates a difficult policy balancing act between encouraging industrial profitability and ensuring basic building materials remain accessible.
BRANDECONOMY Insight
Nigeria’s cement industry illustrates a broader structural paradox in emerging economies: industrial success amid consumer distress.
The sector has achieved remarkable scale, efficiency, and profitability. Nigeria is now one of Africa’s largest cement producers, with strong export potential across West Africa.
Yet domestic affordability remains a challenge.
Three structural issues explain the pricing tension:
- Energy and Infrastructure Costs
Cement manufacturing is energy-intensive, and Nigeria’s unreliable power supply significantly increases production costs. - Logistics and Distribution Inefficiencies
Transport bottlenecks and supply-chain intermediaries often inflate final retail prices. - Market Concentration
A small number of dominant producers means pricing dynamics are influenced by industry structure.
For policymakers, the challenge is not simply forcing price reductions.
Instead, the focus must be on reducing production and logistics costs, improving infrastructure, and enhancing competitive transparency across the supply chain.
Without these reforms, Nigeria’s housing affordability crisis will continue to widen—even as its cement industry posts record profits.
