Nigeria’s three cement manufacturers recorded profit of N710.03 billion in 2023 as significant upsurge in sales and considerably higher prices lessened pressures on operations.

A sectoral intelligence report by The Nation yesterday showed that the trio of Dangote Cement, BUA Cement and Lafarge Africa have seen substantial growths in sales and profitability.

However, foreign exchange (forex) losses impinged on the net profit of the companies.

Total sales by the companies rose from N2.35 trillion in 2022 to N3.076 trillion in 2023. Also, operating profit increased from N799.79 billion in 2022 to N910.99 billion in 2023.

Profit before tax however, dropped from N713.89 billion in 2022 to N710.03 billion in 2023.

The decline in pre-tax profit was largely due to BUA Cement, which saw a considerable slowdown in profitability.

After taxes, net profit for the firms rose from N536.97 billion in 2022 to N576.17 billion in 2023.

While the three cement companies exclusively control the Nigerian cement market, the vast ownership of the companies are also held by three entities. Alhaji Aliko Dangote holds 85.8 per cent majority equity stake in Dangote Cement. Alhaji Abdul Samad Rabiu holds 95.79 per cent controlling shares in BUA Cement while French multinational, Holcim Limited, holds 83.81 per cent in Lafarge Africa.

The cement manufacturers, which enjoy exclusive cement production and sales, have come under intense searchlight as cement prices skyrocketed.

Under the backward integration project, Nigeria banned importation of cement, leaving the three domestic producers as the sources for the nation’s vast cement requirements.

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