Cement Market to Hit N5.8tn as Housing Costs Rise

Nigeria’s cement market could grow from about N3.59 trillion in 2025 to more than N5.8 trillion by 2030, reflecting strong demand across construction and infrastructure.

The Global Cement Group expects the market to expand by 12.6 per cent in 2026, reaching about N3.9 trillion. It also projects a 10.2 per cent annual growth rate between 2026 and 2030, with the dollar value rising from $1.33 billion to $1.96 billion by 2029.

The growth continues to come from public infrastructure projects, urban housing and import substitution. Local producers have maintained supply despite currency pressures, high energy costs and logistics challenges. The industry is also investing in alternative fuels, digital logistics and energy efficiency to manage rising costs.

Meanwhile, Dangote Cement, BUA Cement and HMB Nigeria, formerly Lafarge Africa, recorded combined revenue of N3.2 trillion in the first half of 2026. Industry experts expect the three companies to post about N6.4 trillion in revenue by the end of the year.

However, the rising cement price in Nigeria has sparked concerns about housing affordability. A 50-kilogramme bag now sells for as much as N12,500, depending on location.

Real estate experts said the strong earnings of manufacturers should prompt a closer look at the cost of cement and its impact on housing. Chudi Ubosi called for greater transparency around production and distribution costs, while Osilama Emanuel Osilama urged stronger competition and lower logistics expenses.

Femi Oyedele said Nigeria’s heavy reliance on cement was contributing to rising construction costs and urged government to promote alternative building materials. Akin Opatola warned that higher cement prices eventually increase the cost of homes, rents and, in some areas, land.

With the cement market continuing to expand, the challenge remains balancing industry growth with affordable housing for Nigerians.

Can Nigeria reduce cement dependence without slowing construction growth?