Nigeria’s rising cement prices are putting fresh pressure on the housing market. Real estate developers warn that higher building costs could slow construction and make affordable homes harder to deliver.

The development comes as the Federal Competition and Consumer Protection Commission (FCCPC) investigates cement pricing in Nigeria. The commission is also examining price differences between Nigeria and selected African markets.

Cement prices climb

Market checks cited in the report showed that a 50kg bag of cement sold for N9,300 to N9,700 in January 2026. By July, the price had reached as much as N15,000 in some locations.

Current prices in parts of Nigeria range from about N11,000 to N13,000 per bag. Prices vary by location, supplier and distribution channel.

The increase has added to existing pressures on property developers. Many are already dealing with high borrowing costs, expensive energy, rising material prices and weak consumer purchasing power.

Higher cement costs can reduce developers’ profit margins. They can also force firms to revise project budgets, slow construction or transfer some of the extra cost to buyers and tenants.

Developers seek lower costs

Victor Ameh, managing director of Legendary Foreshore Construction, said cement prices between N13,500 and N15,000 were making construction more difficult.

Ameh noted that many developers depend on bank financing. High borrowing costs therefore make any increase in building material prices more difficult to absorb.

He called for more investment across the cement value chain. He also urged measures to reduce electricity and fuel costs, saying lower production costs would support the construction industry.

Chudi Ubosi, chairman of the Association of Capital Market and Valuers, also called for more investment and competition in cement production.

Ubosi pointed to Nigeria’s large limestone reserves as an opportunity for new investment. He said more producers could help increase competition in the cement market.

He also warned that high cement prices have effects beyond construction. According to him, the impact reaches manufacturing, real estate, commerce and hospitality.

FCCPC faces calls for wider review

The FCCPC investigation has also drawn calls for a broader review of cement pricing. Industry stakeholders say production costs alone do not explain the final price paid by consumers.

Mansur Ahmed, interim chairman and president of the Pan-African Manufacturers Association (PAMA), said the commission should consider the wider economic environment. He cited financing costs, infrastructure gaps and other economic factors.

Muda Yusuf, director-general of the Centre for the Promotion of Private Enterprise (CPPE), also called for a detailed review of cement production costs.

Yusuf said taxes, levies, transport, logistics, energy and financing costs should form part of any comparison between Nigeria and other countries. He also stressed the importance of considering both producers and consumers.

West African prices vary

Cement prices across West Africa show that regional differences are not uniform.

In Lomé, Togo, a 50kg bag sells for about CFA4,550. That was equivalent to roughly N10,844 or $8.03 using the August 18, 2026 exchange rates cited in the report.

The reported average price in Benin Republic was CFA4,500, or about N10,725. In Ivory Coast, CFA5,000 was equivalent to approximately N11,917.

In Ghana, a 50kg bag sold for about GH₵106, equivalent to roughly N12,962.

Prices within Togo also varied sharply by location. A 50kg bag cost about N10,844 in Lomé, compared with approximately N15,492 in Kara and N17,160 in Dapaong.

The differences point to the role of transport, distribution, taxes and other supply-chain costs in determining the final price of cement.

Housing affordability under pressure

For Nigeria’s housing sector, the main concern is the effect of higher cement costs on project delivery.

Developers now face difficult choices. They can absorb the extra cost, reduce the size of projects or raise property prices and rents.

The Real Estate Developers Association of Nigeria (REDAN) described cement affordability in March as a national housing emergency. The association also called for a review of pricing dynamics, including differences between domestic and export prices.

Higher construction costs matter because they affect the entire housing supply chain. When developers face larger project expenses, the cost of new homes can rise. This can make it harder for households to enter the property market or afford better rental housing.

What the FCCPC investigation could mean

The FCCPC investigation could have implications beyond the cement industry. Its findings may help clarify the role of production costs, competition, distribution and other market factors in determining cement prices.

For developers, however, the immediate issue is affordability. They need construction materials at prices that allow projects to remain viable while keeping homes within reach of buyers and tenants.

As the investigation continues, policymakers will face the challenge of supporting a sustainable cement industry while addressing the rising cost of housing. The outcome could influence how Nigeria approaches competition, construction costs and efforts to expand housing delivery.

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A new chapter has opened in Nigeria’s building materials industry as Lafarge Africa Plc officially unveiled its new corporate identity and name, HBM Nigeria Plc, following a change in ownership structure and strategic direction.

The rebranding marks a significant milestone in the company’s transformation journey and aligns with its integration into the global operations of Huaxin Building Materials Group, a leading Chinese construction materials company.

The company assured stakeholders that the transition to HBM Nigeria Plc would not affect its operations, workforce, customers, shareholders or longstanding commitment to supporting Nigeria’s economic growth and infrastructure development.

Huaxin, a Chinese building materials giant established in 1907, recently acquired the controlling stake previously held by Holcim in Lafarge Africa, paving the way for the company’s new identity.

Speaking during the unveiling ceremony in Lagos, Group Managing Director and Chief Executive Officer, Lolu Alade-Akinyemi, described the rebranding as a strategic move designed to position the company for future growth while maintaining its strong presence in Nigeria’s construction sector.

“HBM Nigeria Plc represents an exciting new chapter in our journey as a leading building solutions company. While our corporate identity is evolving, our commitment to Nigeria remains unwavering,” he said.

Alade-Akinyemi noted that the company would continue delivering high-quality cement, concrete, aggregates and innovative building solutions aimed at supporting infrastructure development, housing expansion and industrialisation across the country.

According to him, the transition will be implemented through a structured and phased process across the company’s nationwide operations to ensure seamless business continuity.

He added that the company remains focused on operational excellence, innovation, sustainability and long-term value creation for shareholders and other stakeholders.

Chairman of HBM Nigeria Plc, Gbenga Oyebode, said the new corporate identity is designed to strengthen the company’s position for long-term success while preserving the values and principles that have defined its legacy over the years.

Oyebode expressed confidence that the company would continue to create sustainable value, strengthen stakeholder trust and contribute significantly to Nigeria’s economic development.

Also speaking at the event, Minister of Works, David Umahi, commended the company for its contributions to Nigeria’s infrastructure development through the execution of major construction and building projects across the country.

The rebranding signals a new era for the company as it seeks to leverage global expertise, advanced technology and expanded industrial collaboration to deepen its impact on Nigeria’s construction and infrastructure sectors.

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Lafarge Africa Plc has confirmed the appointment of five directors and the re-election of three others following resolutions passed at its 67th Annual General Meeting held in Lagos.

The company disclosed this in its AGM resolutions dated May 5, 2026, after the meeting held on April 30 at the Grand Banquet Hall of the Civic Centre, Victoria Island.

The resolutions were certified by the Company Secretary, Adewunmi Alode, and the Group Managing Director/Chief Executive Officer, Lolu Alade-Akinyemi.

According to the resolutions, shareholders ratified the appointment of five directors, including Wang Xuanqian as Executive Director.

The company also confirmed the appointments of Gang Xu, Qian Chen, Jiajun Wang, and Lin Zhang as Non-Executive Directors.

In addition, shareholders approved the re-election of board chairman, Gbenga Oyebode, as Non-Executive Director, alongside Oyinkansade Adewale and Olusola Oworu as Independent Non-Executive Directors.

Beyond the board changes, shareholders approved a final dividend of N6 per ordinary share for the 2025 financial year, amounting to a total payout of approximately N96.6 billion, subject to applicable taxes.

The company also authorised its directors to determine the remuneration of external auditors for the 2026 financial year and approved the election of shareholder and board representatives into the statutory audit committee.

As part of governance measures, shareholders fixed the remuneration of Non-Executive Directors at N146.4 million for the 2026 financial year.

They also granted the company a general mandate to undertake related-party transactions required for day-to-day operations under normal commercial terms.

In another major development, shareholders approved a change in the company’s corporate identity from Lafarge Africa Plc to HBM Nigeria Plc, including amendments to its Memorandum and Articles of Association.

The approvals followed a strong financial performance by the cement manufacturer in 2025.

The company reported revenue of N1.1 trillion for the financial year, representing a 53 per cent increase from the N696.8 billion recorded in 2024.

Profit after tax also surged by 173 per cent to N273 billion, supported by improved sales volumes, enhanced plant stability, cost management measures, and stronger distribution operations.

Operating profit more than doubled during the year, while earnings per share increased from N6.22 to N17.

The company also disclosed that expansion projects at its Ashaka and Sagamu plants are ongoing and expected to increase total installed production capacity to 14 million metric tonnes per annum.

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Lafarge Africa Plc has announced a 246 percent increase in profit after tax, reaching N207.78 billion for the nine months ending September 30, 2025, compared to N60.08 billion in the same period last year. The surge was driven by strong cement sales and improved operational efficiency.

The company’s unaudited financial results show revenue rose by 63 percent to N780.49 billion from N479.49 billion in 2024. Cement accounted for N759.62 billion of total sales, a 63 percent rise from N466.27 billion the previous year. Sales of aggregates and concrete grew to N19.95 billion, while other products contributed N915.24 million.

Lafarge Africa’s CEO, Lolu Alade-Akinyemi, attributed the strong performance to “sustained volume growth, operational excellence, innovative products, and agile response to market opportunities.” Operating profit rose by 129 percent to N298.41 billion, while profit before tax increased to N313.29 billion from N94.33 billion.

Despite inflation and rising energy costs, Lafarge managed to keep expenses under control. Cost of sales rose by only 34 percent to N324.36 billion, far below revenue growth. Finance costs dropped sharply to N5.40 billion from N36.56 billion due to reduced borrowings and lower foreign exchange losses, while finance income climbed to N20.28 billion from N810.54 million.

Total assets increased to N1.03 trillion from N810 billion in 2024, supported by higher investments in plants and stronger cash reserves. Equity grew to N629.2 billion from N345 billion, reflecting strong retained earnings despite a dividend payout earlier in the year.

Lafarge ended the period with N204.88 billion in cash and cash equivalents and generated N91.48 billion from operating activities, nearly double the figure recorded last year, highlighting the company’s solid financial position and sustainable growth outlook

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Dangote Cement has posted an impressive ₦2.07 trillion in revenue for the first six months of 2025, setting the pace for another record year in Nigeria’s manufacturing sector. The company achieved this milestone despite lower sales volumes and higher operating expenses, underlining its pricing strength and resilience.

With revenue for H1 2025 already accounting for more than 57% of last year’s full turnover, the company has reinforced its position as Africa’s largest cement producer.

Operations and Structure
Dangote Cement runs its business through two core divisions:

• Nigeria Operations – overseeing domestic production, sales, and distribution.

• Pan-Africa Operations – covering subsidiaries in more than nine countries, exporting cement and clinker to meet regional demand.

Its main plants are located in Obajana (Kogi State), Gboko (Benue State), and Ibese (Ogun State), supplying millions of tonnes of cement annually.

Key Drivers of Growth

Revenue rose 17.7% year-on-year, climbing from ₦1.76 trillion in H1 2024 to ₦2.07 trillion in H1 2025. This growth came even as volumes dropped 4.08% to 13.37 million tonnes, showing that higher pricing and resilient demand outweighed lower output.

The company maintained strong operational efficiency, with an inventory turnover of 1.23x and a receivables turnover of 14.61x, reflecting faster sales and payments.

Regional and Product Performance

Cement and clinker sales made up 99.99% of total revenue, confirming the company’s reliance on its core product. By geography:

• Nigeria: ₦1.44 trillion (67.89%)

• Pan-Africa: ₦682.12 billion (32.11%)

Nigeria’s share rose from 55.12% in H1 2024, while Pan-African contribution declined slightly due to eliminations and softer demand.

Profitability Gains

Operating profit surged 47% year-on-year to ₦810.98 billion, while pre-tax profit soared 149% to ₦730.03 billion. Gross profit stood at ₦1.22 trillion, with a margin of 58.8%.

Finance costs dropped significantly to ₦102.91 billion from ₦307.72 billion, supported by a quadrupling of finance income. Net income margin jumped to 25.12%, compared to 10.79% last year.

Liquidity and Market Standing

Receivables grew 43% to ₦166.98 billion, inventories rose 6.96% to ₦716.29 billion, while cash and cash equivalents fell 14.66% to ₦383.90 billion.

In Nigeria, Dangote Cement remains the market leader against BUA Cement and Lafarge Africa. Globally, it competes with LafargeHolcim and HeidelbergCement, but its domestic scale gives it unmatched dominance.

Bottom Line
Dangote Cement’s half-year performance highlights its role as the backbone of Nigeria’s construction sector and a key player in Africa’s industrial growth. Turning ₦2.07 trillion sales into ₦730 billion profit in six months demonstrates the strength of its model balancing scale, pricing power, and efficiency.

The company continues to prove why it is Africa’s cement powerhouse.

Source: Nairametrics

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Swiss cement giant Holcim has completed its long-anticipated withdrawal from Nigeria, sealing a $1 billion deal to transfer its controlling 83.81 percent stake in Lafarge Africa Plc to China’s Huaxin Cement.

The agreement, concluded eight months after the initial announcement, marks Holcim’s full exit from Nigeria’s cement market. The transaction was valued on a 100 percent equity basis, subject to dividend adjustments.

Lafarge Africa, previously part of Holcim’s global operations, is a key producer of cement, aggregates, and ready-mix concrete in Nigeria.

Announcing the completion, Martin Kriegner, Holcim’s regional head for Asia, the Middle East, and Africa, said the divestment would allow the group to concentrate on growth in other regions while ensuring stability for Lafarge’s Nigerian operations under its new ownership.

“We are pleased to hand over to Huaxin Cement, a strong partner committed to investing in the Nigerian market,” Kriegner said, noting that the proceeds would strengthen Holcim’s growth-focused capital allocation strategy.

Huaxin Cement, one of China’s leading cement manufacturers, has been expanding its presence across Africa in recent years, with the Lafarge acquisition expected to deepen its footprint on the continent.

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