Nigeria’s cement industry has kicked off 2025 on a high note, recording a combined revenue surge of N1.53 trillion in the first quarter (Q1) of the year.

This was fueled by strengthening naira, strong local demand and effective cost-saving strategies.

The performance marks a sharp rebound from the currency-induced headwinds that dragged the sector through much of 2024.

The Central Bank of Nigeria (CBN)’s recent FX market reforms yielded a more stable exchange rate environment in Q1 2025, with the naira averaging N1,521.78/$1, compared to N1,621.71/$1 in the preceding quarter.

This shift helped ease import-related costs and reduce FX losses for major manufacturers — BUA Cement, Dangote Cement, and Lafarge Africa — all of which posted significant year-on-year growth in earnings.

Specifically, BUA Cement Plc delivered a standout performance, reporting an earnings per share (EPS) jump of 351.4 per cent to N2.40, driven by an 80.5 per cent increase in revenue (N290.82 billion) and a dramatic reduction in FX losses — down 91.7 per cent to N836.81 million.

Overall, the company’s profit before tax (PBT) surged by 368.6 per cent year-on-year (y/y) to N99.74 billion, while profit after tax (PAT) rose by 351.4 per cent y/y to N81.12 billion after a tax expense of N18.62 billion.

Dangote Cement Plc posted a PAT increase of 85.7 per cent y/y to N209.25 billion, as revenue rose by 21.7 per cent to N994.66 billion. While total volumes dipped by 6.7 per cent across the group, average price per tonne jumped by 30.5 per cent, offsetting the decline.

Nigerian operations led growth with a 53.7 per cent revenue boost, while Pan-African performance weakened due to post-election disruptions in Senegal and liquidity challenges in Ethiopia. Nevertheless, FX losses declined by 72.6 per cent and EBITDA margin expanded to 46.2 per cent, aided by fuel substitution and logistics cost savings.

On its part, Lafarge Africa Plc recorded the most dramatic earnings recovery, with EPS surging by 836.7 per cent to N3.02, and PAT hitting N48.64 billion, thanks to robust cement demand and a steep drop in FX losses. Its revenue rose by 80.3 per cent to N248.35 billion, driven by strong sales across all product segments. Though input costs remained high, the company’s EBITDA margin improved to 32.0%, reflecting gains in efficiency.

Hence, the trio’s revenue grew to N1.533 trillion as against N1.17 trillion recorded in the corresponding period of 2024, representing a 182.5 per cent increase.

Reacting to the development, analysts noted that the reduction in FX losses reflects the relative stability of the naira and a lower foreign currency debt exposure of the companies. Analyst at CapitalEdge Advisory, Kola Adebayo, noted that FX stability has come as a relief for manufacturers.

“For the cement sector, it translates to lower production costs and stronger margins. What we are seeing now is not just cost relief but also improved competitiveness in regional exports. Furthermore, I will state that investors responded positively to the sector’s Q1 earnings, with cement stocks rising an average of 8.6 per cent on the Nigerian Exchange Limited (NGX) over the past week.

The recovery in FX management and the knock-on effect on industrial earnings is a sign that macroeconomic reforms are beginning to bear fruit,” Adebayo explained.

Manufacturers are increasingly relying on price optimisation, alternative energy, and logistics efficiency to protect margins and grow market share.

Still, risks linger as volatile energy prices, interest rate pressures, and regional political uncertainties could challenge the sustainability of gains, especially in Pan-African markets. For now, however, Nigeria’s cement giants are off to a powerful start.