Nigeria’s three largest listed cement manufacturers generated a combined N3.2 trillion in revenue in the first half of 2026, as higher cement prices, robust construction activity and sustained infrastructure development boosted earnings despite continued macroeconomic pressures.

Unaudited financial statements released by Dangote Cement, BUA Cement and HBM Nigeria showed that combined Nigeria-only revenue rose by 26.5 per cent to N3.2 trillion in the six months ended June 2026, up from N2.5 trillion recorded in the corresponding period of 2025.

The results highlight the resilience of Nigeria’s cement industry, with all three companies posting double-digit revenue growth, improved profitability and renewed capital investments to expand production capacity amid sustained demand from residential, commercial and infrastructure projects.

Dangote Cement maintained its position as the industry’s largest player, reporting Nigeria revenue of N1.8 trillion, representing a 25.2 per cent increase year-on-year. Including its operations across 21 African countries, the group’s total revenue rose to N2.5 trillion, with its Nigerian business contributing more than 70 per cent of earnings.

BUA Cement recorded revenue of N728.9 billion, up 25.6 per cent from the same period last year. The company also reported a sharp rise in bulk cement sales, which climbed from N236 million in the first half of 2025 to N40.2 billion in the corresponding period of 2026, reflecting stronger demand from infrastructure and industrial projects.

HBM Nigeria, formerly Lafarge Africa following its rebranding in May 2026, delivered the strongest revenue growth among the three manufacturers. Revenue increased by 31.2 per cent to N678.4 billion as the company strengthened operations under its new majority owner, Huaxin Cement.

The companies attributed their performances to higher sales volumes, operational efficiency and improved distribution networks, while expressing optimism that urbanisation and government infrastructure spending will continue to support cement demand.

Chief Executive Officer of Dangote Cement, Arvind Pathak, said the company’s first-half performance reflected “the strong momentum built since the start of the year,” driven by disciplined execution, increased sales volumes and sustained demand across its markets. He added that the group’s strong cash position would support future investments while maintaining disciplined capital allocation.

BUA Cement Managing Director and Chief Executive Officer, Yusuf Haliru Binji, said the company had “delivered a strong quarter despite the constraints encountered,” noting that ongoing process optimisation would improve productivity and support stronger performance in the coming quarters.

At HBM Nigeria, Group Managing Director, Lolu Alade-Akinyemi, attributed the company’s performance to double-digit volume growth, improved plant reliability, stronger distribution efficiency and disciplined cost management. He added that engineering work had commenced on a new three-million-tonne integrated cement plant in Calabar to support future expansion.

The strong earnings came amid significant increases in retail cement prices during the review period. Prices for a 50kg bag rose from between N9,300 and N9,700 in January to between N10,500 and N13,000 by mid-year, with prices reaching as high as N15,000 per bag in some states by July.

Industry players attributed the price increases to higher energy costs, foreign exchange pressures on imported inputs and rising logistics expenses. Dangote Cement Chairman, Emmanuel Ikazoboh, said elevated energy and foreign exchange costs had been reflected in product pricing.

Financial results also showed that revenue growth exceeded volume growth across the three companies, indicating that price adjustments significantly supported earnings.

Despite the strong revenue performance, operating costs also increased. The companies spent a combined N527.9 billion on selling and distribution expenses during the period, with haulage and distribution accounting for N421.5 billion, underscoring the logistics-intensive nature of cement production.

The manufacturers also accelerated investments aimed at expanding production capacity. HBM Nigeria’s capital expenditure increased nearly fivefold to N141.5 billion, driven largely by expansion projects, including the Ashaka debottlenecking programme.

Dangote Cement reported gross capital additions of N354.2 billion, although only N130.7 billion represented cash payments, with the balance financed through supplier credit.

The latest results extend a multi-year growth trend in Nigeria’s cement industry. Combined revenues for Dangote Cement, BUA Cement and HBM Nigeria have risen from about N1.93 trillion in 2021 to N6.55 trillion in 2025, although the depreciation of the naira has reduced the industry’s dollar-denominated earnings over the same period.

The strong first-half performance reinforces investor expectations that sustained urbanisation, housing development and public infrastructure projects will continue to underpin growth in Nigeria’s cement sector. (AriseNews TV)