Nigeria’s cement industry has once again posted impressive earnings in H1 2025; but the story behind the numbers is one of consumers bearing the brunt of unrelenting price hikes.
As the economy grapples with stubborn inflation, high energy costs, and expensive imports, cement makers have shifted much of the burden onto households, builders, and developers driving construction costs to new highs.
Earlier in 2025, Works Minister David Umahi urged manufacturers to cut prices to ₦7,000, citing a stronger naira and falling petrol costs, but the market—dominated by three major players—remains largely unmoved.
Producers blame diesel, gas supply disruptions, and other operational challenges for the hikes, yet margins remain high. Lafarge, for example, reported a 75% sales jump and a 144% rise in operating profit in H1 2025, despite flat production volumes.
For consumers, the numbers highlight a reality where profits are fueled more by higher prices than increased output—driving up construction costs for homes, infrastructure, and commercial projects. Industry watchers say the sector still has room to absorb some of these costs instead of transferring them wholesale to end users.