The commencement of cement production in Nigeria dates back to 1954, with the establishment of the Nigerian Cement Company Plc (NigerCem), owned by the Federal Government of Nigeria (FGN), five South Eastern states, and the general public. Post-independence, other plants, including Ashaka Cement Limited, Benue Cement Company Plc, and the Cement Company of Northern Nigeria Plc, were established, commencing the nation’s journey towards self-sufficiency in terms of local cement production. As of date, the Nigerian Cement Industry (“the Industry”) comprises three major players, including Dangote Cement Plc, BUA Cement Plc, and Lafarge Africa Plc. The Industry contributes directly and indirectly towards the growth of the nation’s economy, driving modern civilisation by providing one of the critical resources used in construction. The Industry also acts as an enabler for other sectors, such as real estate, construction and solid minerals. Furthermore, through the construction, renovation, and rehabilitation of roads, bridges, and other public infrastructure, local cement manufacturers play a major role in the nation’s economic development and the enhancement of social welfare, leading to favourable government policies and support over the years.
As at 30 June 2024, the Industry majors had a combined production capacity of 62.8 MMTPA spread across five of the nation’s six geopolitical zones: the North Central, the South-South, the South West, the North West, and the North East regions. In 2023, the supply of cement in the Industry, represented by sales of the industry majors, declined by 5.2% year-on-year to 28 MMT due to the slowdown in demand during the review period. Dangote Cement Plc accounted for the bulk (58.5%) of total supply in 2023, driven by its considerable installed production capacity in relation to its peers and the strong consumer preference. BUA Cement Plc (23.6%) and Lafarge Africa Plc (17.9%) also accounted for significant shares of the Industry’s supply. In 2023, the Industry’s supply represented 49.3% of the installed cement production capacity, lower than 51.9% recorded in the prior year. Indeed, in the last four years, supply to installed capacity was lowest in 2023. We anticipate a further reduction in supply to installed capacity as the prevailing headwinds moderate demand while Industry major expands the manufacturing plant to support their export activities.
This report provides current information on the features and performance of the Industry, including:
We believe the information, analyses and opinions contained in this report would be useful to:
