Cement manufacturers have recorded a boom but soaring prices have further put pressure on Nigerians.
The manufacturers recorded a combined profit of N1.64 trillion for the 2025 financial year.
This underscored strong earnings growth even as consumers struggle with soaring cement prices now averaging about N12,000 per bag.
According to the companies’ corporate disclosures released on the Nigerian Exchange Ltd., Dangote Cement posted a profit of N1.01 trillion, BUA Cement recorded N356.04 billion, while Lafarge Africa realised N273.12 billion, bringing the total to N1.64 trillion.
Dangote Cement also reported a 20.3 per cent increase in revenue to N4.31 trillion for the year 2025, compared with N3.58 trillion in 2024.
The company said that after a tax charge of N517.74 billion, net profit more than doubled to N1.01 trillion from N503.25 billion recorded in the preceding year.
Similarly, BUA Cement reported a profit after tax of N356.04 billion in 2025, a sharp increase from N73.91 billion in 2024.
Its profit before tax rose to N465.28 billion from N99.63 billion, while operating profit surged to N504.55 billion from N144.30 billion.
The company’s revenue grew to N1.18 trillion from N876.47 billion, supported by improved margins as cost of sales declined slightly to N575.26 billion.
Lafarge Africa also posted strong performance, with net sales rising by 53 per cent to N1.07 trillion from N696.76 billion in 2024.
Profit before tax increased by 170 per cent to N411 billion, while profit after tax jumped by 173 per cent to N273.12 billion.
However, in spite of the impressive financial performance of the cement giants, many Nigerians say the rising cost of cement has made housing construction increasingly unaffordable.
Mr Tajudeen Lawal, a civil servant, said that he started building his two-bedroom bungalow in 2020 when cement was cheaper.
He said that with the current price at N12,000 per bag, he had completely abandoned the project, noting that his salary could no longer keep up with the increase.
Lawal noted that what pained him most was that each time he saved money to continue the project, the price of cement increased again, adding that at that rate, he did not know when he would be able to complete his house.
Also speaking, Mrs Ayodele Fasuyi, a landlady in Lagos, said the high cost of cement had delayed her other building projects, forcing her to suspend construction.
Mrs Funmilayo Olowoyo, a civil servant in Ilorin, Kwara State, described her ordeal of trying to build a three-bedroom flat as horrible due to the high cost of cement.
She said she had to make significant sacrifices and save more rigorously to make her three-bedroom flat habitable.
Olowoyo also recounted witnessing people resorting to low-quality building materials as a result of the rising cost of cement.
According to her, many people now embrace mud houses due to the high cost of cement.
She urged producers of the product to consider the country’s economic situation and cushion the effect by reducing cement prices to make life more meaningful for ordinary Nigerians.
Mr Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), has urged the government to address the rising cost of cement in the country.
Igbrude also commended cement manufacturers for creating jobs and contributing to community development.
The ISAN National Coordinator, who spoke from both an investor and consumer perspective, acknowledged that shareholders appreciate the companies’ performance, particularly in job creation and corporate social responsibility initiatives within their host communities.
He noted that developments driven by private sector initiatives, especially in industrial areas such as Apapa, demonstrate the positive impact of these companies on the economy.
However, he expressed concern over the persistently high price of cement, emphasising the need for a thorough investigation into the underlying causes.
According to him, the pricing pattern among major producers suggested a form of market balance, where companies were cautious about raising or lowering prices significantly to avoid losing customers or incurring losses.
“This points to a deeper structural issue that requires government intervention,” he said.
Igbrude called on the Federal Government to engage manufacturers to understand the key factors driving high production costs, adding that addressing such challenges could lead to more competitive pricing.
He explained that manufacturers may be willing to reduce prices if certain constraints, such as infrastructure and operational costs, are addressed through government support.
The ISAN coordinator also highlighted the role of intermediaries in the supply chain, alleging that middlemen often inflate prices between factories and end-users, thereby undermining any price reductions by producers.
He emphasised that any effort to lower cement prices would be ineffective if such practices were not checked.
Igbrude urged the Federal Competition and Consumer Protection Commission (FCCPC) to investigate the situation by gathering relevant data and engaging stakeholders across the value chain.
He noted that a coordinated approach involving regulators, manufacturers, and government agencies is essential to resolving the issue.
