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

Nigeria's leading cement manufacturers, Dangote Cement Plc, Lafarge Africa Plc, and BUA Cement Plc, have collectively generated a profit of N762.97 billion in the first quarter of 2026. This substantial profit surge, a 57% increase from the N484.83 billion reported in the same period last year, is attributed to prohibitive cement prices and increased government investment in infrastructure projects.

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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.

The price of a bag of cement now ranges between N12,500 and N14,000 across the country. This rise in cost coincides with a resurgence in domestic demand and significant budget allocations towards infrastructure development. The Nigerian cement sector is poised for considerable growth in 2026, fueled by these strong demand drivers, ongoing capacity expansions, and a generally improving macroeconomic climate.

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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.

Dangote Cement reported a profit before tax of N421.17 billion, a 35% increase from Q1 2025. BUA Cement saw a 93% rise to N192.68 billion, while Lafarge Africa experienced a 104% jump to N149.12 billion. Collectively, these three companies posted N1.89 trillion in revenue for Q1 2026, a 23% growth from the previous year.

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The whooping N762.97 billion profit is about 57 per cent increase over the N484.83 billion reported in Q1 2025.

Arvind Pathak, Group Managing Director and CEO of Dangote Cement, highlighted the company's strong performance, with revenue up 20.4% year-on-year to N1.2 trillion. He attributed this to a 13.8% growth in volumes and effective cost control. Pathak also noted the rapid scaling of Dangote Cement's export business, with volumes from Nigeria increasing by 71.6%. The company is progressing with expansion projects in Itori and Ethiopia, aiming to reach 80 million tons of production capacity by 2030, reinforcing its position as Africa's leading cement exporter.

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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.