Amidst Prohibitive Prices, Cement Producers Rake N762.97bn Profit in Q1

Kayode Tokede

On the back of prohibitive price of cement, Nigeria’s leading cement manufacturing companies, Dangote Cement   Plc, Lafarge Africa Plc and BUA Cement Plc generated an estimated N762.97 billion profit in the first quarter of 2026.

 A bag of cement now cost between N12,500 and N14,000 depending on the location in the country as the government increases budget allocations to infrastructure projects and resurgence in domestic demand.

The cement sector in Nigeria is projected to experience significant growth in 2026, driven by strong demand drivers, capacity expansion, and an improving macroeconomic environment. 

According to the unaudited results for the first quarter ended March 31, 2026, the whooping N762.97 billion profit is about 57 per cent increase over the N484.83 billion reported in Q1 2025.    

Specifically, Dangote Cement posted N421.17 billion profit before tax, about 35 per cent increase over N311.97 billion reported in Q1 2025.

On its part, BUA Cement declared N192.68 billion profit before tax in Q1 2026, 93 per cent increase over N99.74billion in Q1 2025 while Lafarge Africa announced N149.12 billion profit before tax in Q1 2026, up by 104 per cent when compared with N73.11billion reported in Q1 2025.  

In terms of revenue, the three companies posted N1.89 trillion in Q1 2026, a growth of 23 per cent from  N1.53 trillion in Q1 2025. 

The breakdown showed that Dangote Cement recorded N1.2 trillion revenue in Q1 2026, up by 20.4 per cent from N994.7 billion in Q1 2025. 

The Group Managing Director and Chief Executive Officer of Dangote Cement, Arvind Pathak, said the results reflected the strength of the company’s operating model and its disciplined execution across markets.

He said, “We have delivered an outstanding start to 2026, with revenue up 20.4 per cent year‑on‑year to N1.2 trillion, driven by a strong rebound in volumes which grew 13.8 per cent across our markets. EBITDA increased by 22.8 per cent to N567.1 billion, demonstrating the strength of our operating model, disciplined cost control, and our ability to convert growth into superior profitability.”

On exports and expansion, he noted the rapid scaling of Dangote Cement’s export business and progress across key growth projects.

“Our export business continues to scale rapidly, with volumes from Nigeria up 71.6 per cent and 10 clinker shipments completed in the quarter. This performance reinforces our strategic position as Africa’s leading cement exporter,” he said.

He added, “Following the commissioning of our 3Mta grinding plant in Côte d’Ivoire, we are progressing well with our expansion projects in Itori and Ethiopia, alongside other growth initiatives across the continent. These investments will further strengthen our footprint and keep us firmly on track to reach 80Mt of production capacity by 2030.”

BUA Cement closed Q1 2026 with a revenue of N354.98 billion, a growth of 22.1 per cent from N290.82 billion in Q1 2025, while Lafarge Africa announced N334.88 billion revenue in Q1 2026, representing an increase of 34.8 per cent from  N248.35billion in Q1 2025.  

The 34.8 per cent revenue growth in Lafarge Africa was supported by strong performance across all segments – cement (+35per cent y/y | 97.8per cent of revenue), aggregates & concrete (+28.6per cent y/y | 2.1per cent of revenue), and mortar & power (+6.8per cent y/y | 0.1per cent of revenue). 

Lafarge Africa’s growth in Q1 2026 was driven by a combination of higher volumes, reflecting stronger demand conditions during the period, and higher pricing. 

Key players in the sector are expected to recover from foreign exchange losses and implement cost-effective strategies to enhance operational efficiencies. 

Public infrastructure spending and housing demands are crucial drivers of growth, with major players expanding capacities to meet rising demands. Innovative energy strategies are also expected to mitigate costs and enhance efficiencies. The stable macroeconomic environment is expected to support resilient earnings growth through 2026.

Commenting, analysts at Chapel Hill Denham stated that the outlook for Nigeria’s cement sector remains firmly positive. They noted stronger demand drivers, measured capacity expansion, and an improving macroeconomic environment make the cement sector well positioned for resilient earnings growth in 2026.

For 2026, analysts at Chapel Hill Denham said the several tailwinds are expected to drive the cement sector forward. They identified public infrastructure spending, strategic capacity expansions by key players, and relatively stable energy prices as pivotal.

“The federal government’s budget allocation of N23 trillion for capital expenditure positions the cement industry centrally within national development efforts as infrastructure projects will inevitably require cement as indispensable material.

“Moreover, rising urbanization and a persistently significant housing deficit, estimated at 15 million units, are set to sustain robust demand for cement. In response, the industry has been preparing for expansion to meet increased demand, maintaining its momentum from 2025.

“Strategic capacity expansions have been a focal area. Dangote Cement and Bua Cement are in the midst of commissioning new plants, collectively augmenting capacity by millions of metric tons annually. 

“Lafarge Africa, which had been stable in terms of capacity for almost a decade, has also announced an increase, reinforcing the industry’s commitment to meeting projected demand growth,” they said.