Nigerian cement manufacturers, including Dangote Cement, reported a collective increase in revenue for the year 2023. This surge in revenue reflects not only the uptick in construction activities but also the rise in cement prices compared to the previous year. Additionally, there’s good news for consumers in some Northern states, as traders have opted to lower cement prices.
Breakdown of Revenue:
Dangote Cement emerged as the most profitable cement company in Nigeria, with a revenue of N2.21 trillion. BUA Cement and Lafarge Africa also experienced revenue growth, reaching N459 billion and N405 billion, respectively. However, only Dangote Cement recorded a positive profit after tax (PAT) due to the depreciation of the Naira, impacting other cement manufacturers.
Price Reductions in Northern States:
Residents of several Northern states can now benefit from reduced cement prices, with the official price per bag ranging between N8,000 and N9,500. This marks a significant decrease from the prices observed in Lagos and Ogun States, where prices were previously higher.
Customer Experience:
In a notable instance, a customer in Kaduna State received a refund of N400 after purchasing cement at a reduced price of N7,800 per bag. This gesture highlights the responsiveness of cement sellers to price adjustments.
Outlook and Initiatives:
NITDA Director-General, Mr. Kashifu Inuwa, emphasized the importance of digital literacy and collaboration among stakeholders to foster a thriving ecosystem. Initiatives such as providing interest-free loans through NELFUND aim to revolutionize higher education accessibility in Nigeria, benefitting individuals, institutions, and the nation as a whole.
Conclusion:
As cement makers witness a revenue surge and take steps to address pricing concerns, the industry remains dynamic, with opportunities for growth and innovation. Collaboration between industry players and government agencies will be crucial in driving sustainable development in the sector.
By Legit.ng journalist Dave Ibemere, with over a decade of experience in business journalism, this report provides insights into the evolving landscape of Nigeria’s cement industry and its implications for consumers and stakeholders alike.
