List of cement companies in Nigeria
Nigeria, with its burgeoning infrastructure development and construction projects, stands as a testament to the pivotal role of cement manufacturing in driving economic growth. Cement, the fundamental building block of modern construction, finds its prominence in Nigeria through the relentless efforts of its manufacturers.
As the nation propels towards its developmental aspirations, the significance of cement production cannot be overstated. In this article, we delve into the realm of Nigeria’s cement industry, uncovering the top ten manufacturers whose contributions have reshaped the landscape of the nation’s construction sector.
In a 2019 study conducted by the Central Bank of Nigeria, formal housing production was estimated at around 100,000 units per year. Despite this, with a population of 213 million people and an average household size of 5, Nigeria faces a staggering demand for housing, needing at least 42 million homes. Shockingly, more than half of this demand remains unmet, showcasing a significant inadequacy in housing provision. Furthermore, the country grapples with a daunting housing deficit of 28 million units, necessitating approximately 1 million new units annually to bridge the gap.
Looking ahead, the 2024 outlook report by Cardinalstone on the Nigerian cement industry projects a substantial increase in housing demand, aligning with the pressing need for more accommodation. However, over the past decade, real estate developers and stakeholders in the housing sector have encountered challenges due to escalating construction input costs. Supply chain disruptions and escalating demand have led to a sharp rise in the prices of building materials, notably cement. Recently in the first quarter of 2024, the average price of cement surged from ₦7,000 to ₦12,000, marking a staggering 71% increase.
The repercussions of this surge in cement prices are far-reaching, exacerbating the already dire housing deficit in Nigeria. With construction costs soaring, the prices of homes for sale or rent are expected to follow suit, presenting a formidable hurdle, particularly amid declining household incomes nationwide. Access to affordable housing becomes increasingly elusive for millions of citizens in the face of these challenges.
To tackle this issue head-on, urgent intervention from the government is imperative. Strict measures need to be implemented to address the underlying causes of rising construction costs and housing unaffordability, ensuring that the housing needs of Nigeria’s growing population are adequately met.
Join us as we explore the cornerstone entities shaping Nigeria’s cement market and driving the nation’s infrastructural evolution.
How does Cement Costs affect real estate?
The cost of cement significantly impacts the real estate sector in several ways:
Construction Costs: Cement is a fundamental component in construction, used in various applications such as foundations, walls, floors, and roofs. Therefore, fluctuations in cement prices directly affect construction costs. When cement prices rise, the overall cost of building materials increases, leading to higher construction expenses. Consequently, developers may either scale back on project scope or pass on the increased costs to buyers, resulting in higher property prices.
Affordability of Housing: Rising cement costs contribute to the escalation of housing prices, making homeownership less attainable for potential buyers, particularly for low- and middle-income individuals. As construction expenses inflate, developers may prioritize high-end projects or upscale housing, leaving fewer affordable housing options available in the market. This could also cause the tenants to bear huge housing costs.
Rental Rates: The increase in construction costs driven by elevated cement prices can also impact rental rates. Developers may seek to recoup their higher expenses by charging higher rents for residential or commercial properties. Consequently, tenants may experience an increase in rental rates, affecting their affordability and financial stability.
Development Projects: High cement costs can deter developers from initiating new construction projects or completing ongoing developments. Projects may be delayed or put on hold as developers wait for favorable market conditions or negotiate better prices for construction materials. This delay in construction activity could lead to a slowdown in the supply of new housing units, exacerbating existing housing shortages or driving up rental rates.
Economic Growth: The real estate sector plays a crucial role in economic growth, contributing to employment, investment, and infrastructure development. Fluctuations in cement costs can impact the pace of construction activity, influencing overall economic performance. Reduced construction activity due to high cement prices may dampen economic growth, affecting various related industries and sectors.
List of cement companies in Nigeria
1. Dangote Cement Plc
Dangote Cement stands as the foremost cement manufacturing entity in Nigeria, renowned for its widespread operations in the preparation, manufacturing, and distribution of cement and associated products. Operating under the umbrella of the Dangote Group, founded by Alhaji Aliko Dangote, the company was established to enhance local cement production. Dangote Cement has emerged as a pivotal player in Nigeria’s construction industry, revered for its unparalleled quality and reliability.
With operations spanning over 14 African countries, Dangote Cement has solidified its reputation as the preferred choice for construction projects across the continent. The company’s footprint extends across Nigeria and various Pan African nations. In Nigeria, Dangote operates three manufacturing plants: the Obajana cement plant in Kogi State, Ibese plant in Ogun State, and Gboko cement plant in Benue State. Beyond Nigeria, its operations encompass Cameroon, Ethiopia, Ghana, Senegal, South Africa, Tanzania, and Zambia.
Dangote Cement maintains its status as one of the select cement companies listed on the Nigerian Stock Exchange (NSE), boasting an impressive market capitalization of ₦10.7 trillion as of February 26th, 2024. This esteemed position on the NSE underscores its prominence as the leading cement company in terms of market capitalization, reaffirming its enduring impact on Nigeria’s cement industry and beyond.
2. BUA Cement
BUA Cement Plc emerges as the result of a strategic amalgamation between Cement Company of Northern Nigeria Plc and Obu Cement Company Plc. With a well-calculated approach, the company has strategically positioned four operational plants across Nigeria, including two in Obu, Edo State, and three in Sokoto State. This concerted effort propels the company’s consolidated installed capacity towards an impressive 17 million metric tonnes per annum, reflecting its commitment to enhancing production efficiency and expanding market reach.
As of February 26th, 2024, BUA Cement proudly holds the title of the second most esteemed cement manufacturing entity listed on the Nigeria Stock Exchange. With a formidable market capitalization reaching ₦5 trillion, BUA Cement reaffirms its standing as a key player in the nation’s cement industry, poised for sustained growth and impact.
3. Lafarge Africa (WAPCO) Plc
Lafarge Africa (WAPCO) Plc stands as a prominent player in Nigeria’s cement manufacturing landscape. As a member of the Holcim Group, the company offers a diverse range of cement products meticulously crafted to meet various construction requirements:
Elephant Cement: Renowned for its versatility, Elephant Cement caters to a wide range of construction applications.
Supaset: Engineered for block makers, Supaset is a rapid-setting cement known for its fast-setting properties and rapid strength gain.
Powermax: Designed for the discerning contractor segment, Powermax is a high-strength cement prized for its superior performance.
Etex: Tailored to meet the specifications for roof tile manufacturing, Etex is a high-performance cement renowned for its reliability.
Sulphate Resistant Cement (SRC): Specifically formulated for coastal construction, SRC offers resilience in challenging environments.
Strategically positioned across Nigeria, Lafarge operates plants in key locations. In the South-west, plants in Ewekoro and Sagamu, Ogun State, boast a combined production capacity of 4.5 million metric tons per annum. Additionally, Lafarge maintains a presence in the South with a plant in Mfamosing and in the North-east with a plant in Ashaka. These strategically located plants enable Lafarge to uphold an impressive installed cement production capacity of 10 million metric tons per annum, solidifying its position as a leading cement manufacturer in Nigeria.
4. Ibeto Cement Company
Ibeto Cement Company Ltd, a subsidiary of the Ibeto Group, commenced operations in 1997, spurred by the Federal Government’s ban on cement importation in bags and the adoption of a policy favoring bulk importation and local bagging. The Bagging Terminal, established in 2001, was a response to this policy shift. Strategically positioned in Bundu Ama, Port Harcourt, Rivers State, the terminal initiated bagged cement production in June 2005.
Equipped with state-of-the-art facilities, including an ultra-modern bagging plant with a flat-storage capacity of 50,000 metric tonnes, the terminal boasts a robust annual production capacity of 1.5 million tonnes. This translates to a daily output of no less than 6,000 metric tonnes, ensuring efficient and consistent supply to meet market demands.
The facility features two production lines, each capable of producing 2,700 50kg bags per hour. Additionally, a third production line, known as the Big Bag Plant, caters to larger bags of 1,500kg, while a fourth line facilitates the production of Bulk Cement powder, loaded onto specialized cement trucks equipped with tanks and discharge pumps.
Looking ahead, the Ibeto Group is actively engaged in establishing a new facility in Ebonyi State with a projected annual capacity of 5 million tonnes or 12 tonnes per day. This expansion underscores Ibeto Cement Company Ltd’s commitment to meeting the evolving needs of Nigeria’s burgeoning construction industry.
5. United Cement Company of Nigeria Ltd
The United Cement Company of Nigeria Ltd (UniCem), a distinguished brand under Lafarge Africa, holds a prominent position in the eastern region of Nigeria. Boasting an installed capacity of 5 million metric tonnes (MMT), UniCem is renowned for its unwavering commitment to quality and reliability.
UniCem cement is celebrated for its exceptional durability and structural integrity, earning it high acclaim among developers and contractors. With superior workability and rapid strength development, UniCem cement is strategically tailored to cater to the diverse needs of residential and commercial real estate projects. It serves as a cornerstone for sustainable construction practices in the region, contributing to the advancement of the construction industry while meeting the demands of evolving infrastructure needs.
6. Ashaka Cement
Ashaka Cement, a distinguished brand under Lafarge Africa Plc, traces its roots back to its incorporation in August 1974. Production commenced in 1979, establishing it as a formidable player in the cement manufacturing and marketing sphere under the name Ashaka Cement Plc. Founded by the defunct Nigerian Industrial Development Bank (NIDB) Limited, the Nigerian Bank for Commerce and Industry (NBCI), Northern Nigeria Investment Limited (NNIL), and the government of the then North-Eastern State (now Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe States), Ashaka Cement has maintained a significant presence in the industry.
With an annual installed cement production capacity of 1 million metric tonnes per annum (MTPA), Ashaka Cement has consistently led the industry. Its integration into the Holcim Group in July 2002, following the acquisition of Blue Circle Industries, UK, marked a notable milestone. In 2018, Ashaka Cement became a subsidiary of Lafarge Africa Plc, further enhancing its market position. Offering both the versatile 32.5 and high-strength 42.5 types of cement, Ashaka Cement stands out for its unwavering commitment to consistent high quality.
7. Niger Cement Company
Established as the pioneering cement company in Nigeria, Niger Cement Company (NIGERCEM) was founded by the Federal Government in collaboration with the Eastern Government in 1956 in Nkalagu, Ebonyi State. Operations commenced in 1957 with a production capacity of 120,000 metric tons before its privatization in 2002.
8. Eagle Cement Corporation
Eagle Cement Corporation, the proprietor of Eagle Cement, operates a reputable cement factory located in Port Harcourt, solidifying its position as a recognized cement brand in Nigeria.
9. Reagan Cement Company Ltd
Reagan Cement Company Ltd stands as a notable contributor to the Nigerian cement industry. As a subgroup of Reagan Cement Company Nigeria Limited, Reagan Cement entered the market in 2013, consistently delivering quality products to its customers.
10. Powermax Cement
PowerMax Cement emerges as a premium technical cement offering strength, versatility, and durability benefits to its customers. Renowned for its superb workability and high early and 28-day strengths, PowerMax Cement effectively meets the productivity demands of construction projects. Its low heat of hydration attribute reduces the risk of cracking in large concrete pours, ensuring optimal performance and durability.
In conclusion, the cost of cement is a critical factor that significantly influences the dynamics of the real estate sector. As a fundamental building material, changes in cement prices have far-reaching implications, affecting construction costs, housing affordability, rental rates, development projects, and overall economic growth.
Rising cement costs lead to higher construction expenses, which in turn can result in increased property prices, making homeownership less attainable for many individuals, particularly those with limited financial means. Additionally, elevated construction costs may translate into higher rental rates, impacting tenants’ affordability and financial stability.
Given these implications, it is essential for policymakers, developers, and industry stakeholders to monitor cement prices closely and implement strategies to mitigate their adverse effects on the real estate market. By addressing the challenges posed by fluctuating cement costs, stakeholders can work towards ensuring a more sustainable and resilient real estate sector that supports inclusive growth and development.
