The three biggest cement producers in Nigeria raked in a total of N1.47 trillion in revenue last year, data collated from their audited financial statements have shown.
An analysis of the data showed that their combined revenue increased by 14.84 percent from N1.28tn in 2019 despite the economic fallout from the COVID-19 pandemic last year.
Dangote Cement Plc said its revenue rose by 16 percent to N1.03tn in 2020 from N891.7bn in 2019.
It said its sales volumes increased by 8.6 percent to 25.7 million tonnes amid the COVID-19 pandemic, adding its capacity in Nigeria increased by three million metric tonnes.
Dangote Cement saw its profit after tax for the financial year 2020 rise by 37.7 percent to N278.1bn on the back of ‘strong demand coupled with cost-saving measures’.
Lafarge Africa Plc’s revenue increased to N230.57bn in 2020 from N212.99bn in 2019.
Its profit after tax from continuing operations rose to N30.84bn in 2020 from N15.52bn in the previous year.
BUA Cement Plc saw its revenue jump to N209.44bn in 2020 from N175.52bn in the previous year.
Its profit after tax grew to N72.34bn from N60.61bn, according to its audited financial statements.
Analysts at the Lagos-based Financial Derivatives Company Limited said in a recent report that the Nigerian cement industry had experienced substantial growth over the past few years.
“With a population of about 200 million people and a population growth rate of approximately three percent per annum, the demand for and consumption of cement is expected to increase,” the FDC analysts, led by Mr. Bismarck Rewane, said.
They said increased government infrastructural projects and maintenance, coupled with urbanization growth, would likely drive the growth of the market.
The demand for cement is driven by infrastructure, commercial and residential real estate development, according to them.
“The government, especially at the federal level, is usually the major driver of cement demand in Nigeria with an estimated 50 percent of total cement consumption,” the analysts said.
“The frequency of road and bridge reconstruction as well as the rehabilitation of social infrastructure emphasizes the government’s continued patronage of the industry,” they added.
They said the increase in government expenditure on infrastructure would also spur private construction.