The Nigerian Cement Industry’s revenue dipped slightly by 0.8% in 2019 to an estimated ₦951 billion, following a drop in Industry demand on account of the disruptions related to the elections conducted during the year. Other major contributors to the Industry’s performance decline were the closure of Nigeria’s land borders in the second half of 2019 (which affected Industry export volumes) and heavy rains (which stalled construction activities in the year). The advent of the COVID-19 pandemic in late 2019 is expected to further pressure Industry revenue by circa 1% in 2020 following its impact on Nigeria’s economy.
In the medium term, we expect the planned infrastructure projects by the government to strengthen Industry demand and subsequently impact positively on growth. In addition, the continued capacity expansion by Industry players and projected increase in export volumes from the Apapa and Onne ports is expected to boost Industry performance in the medium to long term.
Agusto & Co’s 2020 Cement Industry Report includes: