Consumers and construction stakeholders across Nigeria are grappling with fresh increases in cement prices, with a 50kg bag now selling between ₦10,500 and ₦11,000 in most states, and as high as ₦11,500 in parts of Lagos.

Market checks across Kwara, Abuja, Kano, Kaduna, Jigawa and Lagos indicate that ₦10,500 has effectively become the new floor price, cutting across major brands including Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc.

In Ilorin and other parts of Kwara State, cement that sold between ₦9,300 and ₦9,700 in January now averages ₦10,500 to ₦10,700. Dealers say the adjustment reflects higher logistics and production-related expenses, though many consumers argue the pace of increases is becoming unsustainable.

Abuja markets such as Utako recorded prices of ₦10,800 to ₦11,200 per bag depending on brand and location. While bulk buyers purchasing truckloads can secure slight discounts around ₦10,500 per bag, smaller builders say such options are beyond their reach.

In Lagos, retail prices have climbed even higher. A 50kg bag that sold for about ₦9,000 in December 2025 rose to ₦10,000 in January 2026 and now trades at up to ₦11,500 in some areas. Retailers in Ojo and Badagry attributed the sharp spike to dealer and middlemen markups, claiming ex-factory prices have not increased proportionately.

Dealers in Kano confirmed that manufacturers now supply cement at ₦10,450 to ₦10,550 per bag, depending on brand. After transportation and handling costs, retail prices typically settle between ₦10,800 and ₦11,000. The development has triggered a ripple effect in the building materials market, with block makers raising prices. In Kano, a nine-inch block that previously sold for ₦750 now costs ₦800.

In Kaduna and Jigawa, prices hover around ₦10,800 to ₦11,000, while some dealers in Zaria reported limited availability at ₦10,200, offering marginal relief.

Beyond domestic concerns, cross-border price comparisons have intensified public debate. Some dealers allege Nigerian cement sells for the equivalent of about ₦7,500 per bag in Niamey, Niger Republic, fueling frustration among local buyers. Industry analysts, however, note that export pricing structures often reflect different tax regimes, exchange rates, incentives and logistics costs.

Stakeholders warn that the sustained increase could dampen construction activity nationwide. A modest two-bedroom bungalow can require several hundred bags of cement from foundation to roofing stage, meaning a ₦1,000 rise per bag may add hundreds of thousands of naira to total project costs.

A former president of the Nigerian Institute of Builders expressed concern that rising cement prices, combined with weak purchasing power, could slow housing delivery and infrastructure development. He called for government engagement with manufacturers to examine cost drivers and explore measures to stabilise prices.

Meanwhile, an official from a major cement manufacturer, speaking anonymously, linked the increase to imported inputs priced in dollars, expressing optimism that prices may moderate if the naira strengthens further.

For now, builders, contractors and households are adjusting to a market where ₦11,000 is increasingly common, reinforcing concerns about housing affordability and the broader impact on Nigeria’s construction sector.

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The official signing, held in the company’s boardroom, brought together executives from BUA, key state officials, and local leaders signaling a unified front in promoting shared progress.

Representing the company’s leadership, Plant Director Bashar Aminu described the agreement as more than just a document, calling it “a promise anchored in action” that ensures community interests remain front and center.

Echoing this commitment, Suleiman Sada, Assistant Director of Administration and Corporate Affairs, stressed that the deal reflects the company’s intention to directly enhance the quality of life across its host areas. “Every clause speaks to real needs, from healthcare to education and employment and we’re ready to deliver,” he said.

Originally slated for 2023, the agreement was postponed to allow the current Sokoto State administration to play a more active role in shaping its direction.

The newly signed accord touches on nine critical development areas, including annual supply of medications to 14 hospitals, scholarships for underprivileged students, construction of clean water facilities, skills training for local youth, road improvements, support for security initiatives, targeted job creation, and donations of cement for grassroots infrastructure projects.

Sokoto State’s Commissioner for Solid Minerals, Yusuf Machido, appladed the initiative, highlighting BUA’s consistent contribution to community upliftment. “What’s happening here should be a model for others,” he said.

Justice Commissioner Nasir Binji also endorsed the partnership, noting that many BUA executives hail from the region, making it unlikely the company would walk away from its obligations. He further advised the adoption of responsible environmental practices such as land restoration post-mining.

Local government chairman Umar Ahmed Dundaye welcomed the agreement and emphasized the importance of collaborating with local leaders to ensure fair access to jobs and development benefits.

Traditional rulers present including Alhaji Samaila Abdulkadir Mijei, Aliyu Hassan Liman, and Alhaji Melatu Gumbi described the agreement as a hopeful step toward sustainable progress, calling for continued transparency and dialogue.

The five-year pact is seen as a blueprint for how businesses can partner meaningfully with their host environments not just for profit, but for people.

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An analysis of the companies’ unaudited financial statements revealed that their combined after-tax profit rose by 17.6 percent to N677.48 billion in 2024, compared to N576 billion in 2023. This growth was fueled by a sharp rise in cement prices, implemented to offset rising operational costs and inflationary pressures.

Dangote Cement led the sector with a N503.4 billion profit, followed by Lafarge Africa at N100.1 billion and BUA Cement at N73 billion. The three companies collectively saw a 68 percent increase in revenue, climbing to N5.15 trillion from N3.06 trillion in 2023.

Price Adjustments and Demand Drive Revenue Growth
Arvind Pathak, CEO of Dangote Cement, attributed the company’s strong performance to a mix of increased sales volume and price adjustments.

“Despite macroeconomic challenges both globally and domestically, we remained dedicated to innovation and value creation, which resulted in strong returns for stakeholders. Our group revenue grew by 62.2 percent,” Pathak stated in the company’s earnings report.

Analysts predict further revenue growth in the second half of 2024, driven by increased public sector demand and government-backed infrastructure projects. However, they cautioned that rising energy prices, FX losses, and higher haulage costs could pressure profit margins.

“The outlook for the cement industry remains positive, given the Federal Government’s capital expenditure drive, which includes a N10 trillion allocation in the 2024 budget and an additional N6.2 trillion supplementary budget,” analysts noted.

Performance Breakdown of Leading Cement Manufacturers
Dangote Cement
Dangote Cement recorded a 62.7 percent revenue increase, reaching N3.58 trillion in 2024, up from N2.2 trillion in 2023.

This was driven by strategic price adjustments and sustained demand. However, production costs rose to N1.64 trillion, affecting overall profit margins.

The company’s stock price appreciated by 50 percent in 2024, closing at N478.80 per share on December 27, up from N319.80 at the start of the year.

This boosted Dangote Cement’s market capitalization to N8.07 trillion, reflecting a N2.69 trillion gain.

Despite the cost pressures, Dangote Cement’s Board of Directors proposed a N30.00 dividend per share, maintaining the same payout as in 2023.

BUA Cement
BUA Cement also recorded strong revenue growth, with earnings surging by 90.8 percent to N876 billion, compared to N459 billion in 2023.

Its after-tax profit rose by 6.4 percent to N73.9 billion, up from N69.4 billion in 2023. The Board has recommended a N2.05 dividend per share for 2024, slightly higher than N2.00 in 2023.

Unlike its competitors, BUA Cement’s stock price fell by 8.8 percent in 2024, closing at N93.00 per share, down from N102 at the start of the year.

Lafarge Africa
Lafarge Africa reported the strongest profit growth among the three, with after-tax earnings nearly doubling to N100.1 billion, up from N51.1 billion in 2023.

Revenue increased by 71.8 percent, reaching N696.7 billion, compared to N405.5 billion in the previous year. Lafarge’s stock price saw a 120.1 percent jump, closing at N69.34 per share, up from N31.50.

The company proposed a 120 kobo dividend for the financial year ended December 31, 2024.

Cement Prices and Market Trends
The Central Bank of Nigeria’s Purchasing Managers Index (PMI) for cement producers rose to 60 points in January 2024, marking the highest reading since October 2023. A PMI above 50.0 indicates industry expansion.

However, cement prices continued to climb, reaching N8,500 per 50kg bag in November 2024, up from N7,500 earlier in the year. The cost had nearly doubled from N4,500 at the beginning of 2023.

Industry experts attribute the frequent price hikes to factors such as high exchange rates, energy costs, and a lack of competition, with Dangote, BUA, and Lafarge controlling 95 percent of Nigeria’s cement market.

Estate manager Sebastine Ovie warned that rising cement prices could disrupt construction projects and lead to cost-cutting measures that might compromise building safety.

“The immediate impact of these price increases is that project timelines are disrupted, causing safety concerns as contractors face pressure to cut corners,” Ovie noted.

Despite these challenges, Nigeria’s cement industry remains positioned for continued growth, supported by strong demand and government infrastructure spending.

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Speaking at the company’s 8th Annual General Meeting in Abuja, Rabiu recounted how the policy, intended to benefit end-users, was instead exploited by dealers who sold the cement at exorbitant prices.

According to Rabiu, BUA Cement sold over a million tons of cement to dealers at the reduced price, expecting these savings to be passed on to consumers. However, the dealers instead sold the cement at prices as high as N7,000 to N8,000 per bag, doubling or even tripling the intended price.

READ ALSO: Current Cement Prices: Dangote, BUA, and Others This Week

A ton of cement is equivalent to 20 bags, each weighing 50 kilograms. The chairman emphasized that BUA Cement had no control over the open market prices, which allowed dealers to make substantial profits at the expense of the company’s policy goals. Consequently, the company had to discontinue the initiative as it was not sustainable and was effectively subsidizing the dealers rather than benefiting consumers.

READ ALSO: Dangote Cement plans to raise N100bn through series 13 and 14 Commercial Paper issuance.

Rabiu also cited the Naira’s devaluation and the fuel subsidy’s removal last year as factors that further complicated the policy’s sustainability. He explained that the exchange rate had shifted dramatically from about N600 to between N1,800 and N1,900 to the US Dollar during that period, making it increasingly difficult to maintain the reduced price.

“We aimed to keep the price at N3,500 to benefit end-users, but the dealers refused to cooperate, forcing us to halt the policy. We didn’t want to be in a position where we were effectively subsidizing dealers who were exploiting the situation for huge profits,” Rabiu stated.

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However, these companies are simultaneously experiencing dwindling profits.

In the first half of 2024, the top cement firms saw a 76.66 percent surge in sales revenue year-on-year, compared to N1.36 trillion posted in June 2023, according to analysis by our source. This jump was primarily driven by a series of price hikes, with the cost of a 50-kilogram bag of cement rising to between N9,000 and N13,000 from about N6,400.

The Minister of Works, Dave Umahi, attributed the price surge to a 42 percent increase in gas costs and rising import duty exchange rates, explaining, “If the cost of their gas rose by 42 percent and the import duty exchange rate has also gone up, it is expected that the cost of cement would go up.”

READ ALSO: Cement Price, Cost of Building Materials, Force Developers to Abandon Projects Nationwide

Despite the increased revenue, the cumulative profit declared by the three manufacturers declined by 9.54 percent, from N277.69 billion in June 2023 to N253.5 billion in the first half of 2024.

Dangote Cement led the revenue surge, earning N1.76 trillion, while BUA Cement and Lafarge declared N363.9 billion and N295.57 billion, respectively. However, only Dangote Cement saw a rise in profits year-on-year, while BUA and Lafarge posted declines.

Dangote Cement’s revenue surged from N950.8 billion in the first half of 2023 to N1.76 trillion in June 2024, an 85 percent increase. The company, controlled by Aliko Dangote, posted a profit after tax of N189.9 billion, up 6.3 percent from N178.6 billion in June 2023, accounting for 72.7 percent of the sales revenue generated by the three companies.

READ ALSO: JUST IN: BUA Cement Crashes Price Of Cement From N5,000 To N3,500 Per Bag

BUA Cement’s revenue rose 64.6 percent year-on-year, from N221 billion to N363.94 billion in the first half of 2024. However, its profit after tax fell dramatically by 85.7 percent, from N63.6 billion in June 2023 to N34.25 billion in the first half of 2024, due to a surge in the cost of sales and a significant foreign exchange loss.

Lafarge Africa’s revenue increased by 49.5 percent, from N197.68 billion in June 2023 to N295.57 billion in June 2024. However, the company’s profit after tax dropped by 17.3 percent, from N35.47 billion in June 2023 to N29.35 billion in June 2024, which the company attributed to foreign exchange losses.

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