Cement manufacturers rake in N5.8tn revenue as prices surge

Nigeria’s three leading cement manufacturers have recorded a combined revenue of N5.8 trillion in the first nine months of 2026, as rising cement prices and increased construction activities boosted their earnings.

Dangote Cement, BUA Cement and HBM Nigeria, formerly Lafarge Africa, generated the revenue between January and September 2026, representing a 21 per cent increase from the N4.8 trillion recorded during the corresponding period of 2025.

Dangote Cement accounted for the largest share, posting N3.8 trillion in revenue, up 19.6 per cent from N3.15 trillion recorded a year earlier. Its production capacity also increased by nine per cent to 22.1 million metric tonnes, while cement sales rose by 6.4 per cent to 14.1 million tonnes.

The company’s average selling price climbed by 9.4 per cent to N170,493 per tonne, reflecting the impact of higher prices on its earnings.

BUA Cement recorded N1.09 trillion in revenue, representing a 26.5 per cent increase from N858.72 billion in the corresponding period of 2025.

HBM Nigeria also posted strong growth, generating N928.25 billion, an increase of nearly 19 per cent from the N780.5 billion recorded in the previous year.

The revenue performance comes amid rising building material costs, with a 50kg bag of cement selling for between N12,000 and N15,000 in Lagos and Ogun States between July and September 2026, compared with approximately N10,000 in September 2025.

Increased construction activities, government infrastructure projects, housing developments and private-sector investments have also contributed to stronger demand for cement.

Nigeria’s construction sector expanded by 6.38 per cent year-on-year in the second quarter of 2026, following a 6.4 per cent growth in the first quarter. The sector’s performance contributed to the country’s overall economic growth of 4.5 per cent during the second quarter.

Major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Abuja-Kaduna-Zaria-Kano corridor and East-West Road, have further strengthened demand for construction materials.

Despite the impressive revenue figures, the manufacturers’ combined cost of sales increased to N2.23 trillion in the nine months under review, compared with approximately N2.04 trillion recorded a year earlier.

Their combined profit before tax also rose by 21.4 per cent to N2.01 trillion from N1.66 trillion in the corresponding period of 2025.

Dangote Cement remained the industry’s largest contributor to profit, while BUA Cement recorded a 64.4 per cent increase in profit before tax to N556.7 billion. HBM Nigeria also reported a 32.3 per cent rise to N414.43 billion.

The companies are also pursuing expansion programmes to increase production capacity and strengthen their positions in Nigeria’s cement market.

Dangote Cement’s planned six-million-tonne-per-year plant at Itori, Ogun State, is expected to commence operations in 2027, while BUA Cement is targeting an increase in installed capacity from 17 million to 23 million tonnes annually through projects in Edo and Sokoto states.

The figures unmask the growing profitability of Nigeria’s cement industry, even as higher prices continue to place additional pressure on construction costs for households, contractors and property developers.