Nigeria’s top three cement producers—Dangote Cement, BUA Cement, and HBM Nigeria (formerly Lafarge Africa)—recorded a combined profit after tax (PAT) of approximately ₦1.16 trillion in the first half (H1) of 2026, marking a significant 40.36 per cent growth compared to the same period in 2025.
This profit surge was driven by a combination of strong demand, higher prices, and improved operational efficiency.
The industry’s profitability was supported by robust revenue growth and disciplined cost management, though operations still faced significant logistical and macroeconomic pressures.
Pinnacle Daily’s analysis of the financial records the companies filed at the Nigerian Exchange Limited (NGX) shows that their combined total revenue in H1 2026 amounted to ₦3.17 trillion, representing a 26.7 per cent increase from ₦2.5 trillion recorded in the corresponding period of 2025.
A breakdown of the half-year performance for Dangote Cement shows that its revenue in Nigerian operations hit ₦1.8 trillion, representing a 25.2 per cent increase from ₦1.4 trillion in H1 2025. With this, Dangote Cement accounted for 56.78 per cent of the combined total revenue of the three firms in the period under review.
The Dangote Cement group’s revenue, including Pan-African operations, increased by 21.4 per cent year-on-year to ₦2. 51 trillion in H1 2026, up from ₦2.071 trillion in H1 2025, “underpinned by higher sales volumes and sustained revenue growth across both the Nigerian and Pan-African businesses,” the company stated in the H1 2026 Unaudited results filed with NGX.
The company maintained its position as the largest industry player as its profit after tax increased by 22.69 per cent to ₦638.53 billion in H1 2026 from ₦520.46 billion in H1 2025.
BUA Cement posted ₦728.9 billion revenue in H1, reflecting an increase of 25.61 per cent from ₦580.3 billion in H1 2025.
The company recorded a ₦324.88 billion profit after tax in H1 2026, representing an increase of 79.6 per cent from ₦180.9 billion in H1 2025. With this, BUA reported the highest profit growth among its peers, driven by disciplined cost management and a swing to net foreign exchange gains.
HBM Nigeria, formerly Lafarge, also recorded a strong performance as its revenue for the standalone company rose by 32.66 per cent to ₦635.85 billion in H1 2026 from ₦479.3 billion in H1 2025. Also, its profit after tax (for the company) rose by 57 per cent to ₦198.43 billion from ₦126.39 billion in the same period of 2025.
While Dangote Cement recorded 64.1 per cent of the market share to remain the market leader ( driven by solid volume growth in its home market of Nigeria alongside strong pan-African expansions), BUA Cement got 18.6 per cent, and HBM took 17.3 per cent of the market share based on their financial performance during the period.
HBM, which rebranded from Lafarge Africa after its acquisition by China’s Huaxin Cement, delivered strong double-digit volume growth and improved plant reliability. Its capital expenditure also increased nearly fivefold to ₦141.5 billion, signaling major expansion plans.
How Pricing, Costs drove Revenue, Profit surge
The companies attributed their strong first-half performances to higher sales volumes, operational efficiency, and enhanced distribution networks. The companies’ leaders remain optimistic that ongoing urbanization and government infrastructure projects will keep demand strong.
The financial reports indicate that revenue growth outpaced sales volume across all three firms, revealing that product price increases played a central role in boosting bottom lines.
Higher Prices
Retail prices for a 50kg bag of cement rose from between ₦9,300–₦9,700 in January to between ₦10,500–₦13,000 by mid-year, and reached as high as ₦15,000 in some states in July. Manufacturers cited rising energy costs, foreign-exchange volatility affecting imported inputs, and soaring logistics expenses as the primary drivers of the price hikes.
Dangote Cement Chairman Emmanuel Ikazoboh confirmed that these elevated operational expenses were directly reflected in consumer pricing.
Operational Costs
While revenue grew, the companies also spent heavily on logistics.
For BUA Cement, while its direct manufacturing costs increased year-on-year by only 2.7 per cent (from ₦293.94 billion in H1 2025 to ₦301.89 billion in H1 2026), its commercial administrative and selling overheads expanded significantly. The company’s selling and distribution expenses rose by 35.7 per cent to ₦40.45 billion in H1 from ₦29.81 billion in H1 2025.
For HBM, its consolidated group’s direct production cost (cost of sales) rose year-on-year to ₦256.60 billion from ₦221.21 billion, while selling and distribution costs rose to ₦85.57 billion from ₦77.40 billion in H1 2025. For the Standalone Company, the cost of sales rose to ₦228.99 billion from ₦194.71 billion, while the selling and distribution cost was ₦81.91 billion against ₦71.76 billion.
Dangote Cement’s overall manufacturing costs rose by 8.3 per cent to ₦924.3 billion in H1 2026 from ₦853.6 billion in H1 2025, while its total selling and administrative expenses grew by 21.3 per cent to ₦540.5 billion, driven by higher haulage expenses.
The rise in distribution cost underscored the high cost of moving cement in Nigeria.
Still on operational costs, rising fuel costs put pressure on BUA Cement’s inventory management. To guard against fuel supply disruptions, the company was forced to tie up substantial working capital on its balance sheet, with fuel inventories surging 52.2 per cent to ₦21.36 billion (up from ₦14.03 billion at year-end 2025).
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Despite broader macroeconomic headwinds, executives of the companies expressed confidence in their operational strategies.
Dangote Cement CEO Arvind Pathak highlighted the company’s “strong momentum built since the start of the year,” driven by disciplined execution and robust demand. He noted that a strong cash position will fund future investments while maintaining strict capital allocation.
BUA Cement MD/CEO, Yusuf Haliru Binji, noted that the company delivered a strong quarter despite operational constraints, adding that ongoing process optimisation would boost productivity and yield stronger results in upcoming quarters.
On his part, HBM Nigeria Group MD, Lolu Alade-Akinyemi, attributed performance to double-digit volume growth, improved plant reliability, better distribution efficiency, and cost control.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X