Dangote Cement, BUA Increase Valuation by 164% Despite Forex Losses

• Nigerian businesses have had to struggle through a tough decade with multiple challenges
• But amid these challenges, the cement giants have still recorded substantial growth in business valuation
• Dangote Cement and BUA Cement were both worth a combined N4.16 trillion but are now worth almost triple that value

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The harsh operating environment in recent years has taken its toll on several companies operating in Nigeria, affecting both business valuation and profits.

Despite these challenges, the major cement manufacturers in Nigeria have held their own, managing to increase valuation despite the losses.

Combined together, Dangote Cement and BUA Cement have grown their business valuation by 163.7% in the last five years.

Businesses record losses due to challenges

Between 2020 and 2025, the macroeconomic environment has seen businesses grapple with reduced sales due to high inflation, rising production costs, rising energy costs, and massive naira devaluation from 2023 till date.

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Several multinationals have been forced to close shop and move major business operations outside Nigeria, and those still operating have had to deal with major losses.

MTN Nigeria, for instance, recorded major FX losses in 2023 and 2024, leading to two consecutive losing years without paying dividends to shareholders. The telecom giant even reported a N400 billion loss in 2024.

Dangote Cement and BUA Cement suffer FX losses

Dangote Cement lost N113.3 billion to foreign exchange fluctuations in H1 2023, and losses rose to N201.3 billion in H1 2024, the Guardian reported.

International operations also brought Dangote Cement an added N249 billion Foreign Exchange loss in 2024.

BUA Cement equally incurred FX losses of N81.8 billion in 2023, and it rose to N188 billion in 2024.

Dangote, BUA cement grow 164% in 5 years

BUA cement market capitalisation has grown from N1.18 trillion in 2020 to N2.83 trillion, while Dangote Cement grew from N2.98 trillion in 2020 to N8.1 trillion by the close of trading on March 31, 2025.

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At $23.11bn, CBN reports highest net FX reserves in 3 years as naira trades at new rates

Alone, Dangote Cement is the second most valuable stock and accounts for 12.2% of the NGX equity market at a market cap of N8.1 trillion, while BUA Cement is the seventh most valuable stock.

Cement demand remains high despite macroeconomic challenges

Stakeholders say that the sustained demand for cement is a key driver to the companies' success, allowing them to pass on the increased production costs to the consumers without losing market share.

Several road construction and real estate projects across Africa have also kept the demand for cement high, allowing both companies to export to other countries and receive FX earnings to compensate for some of the losses.

Dangote Group loses N423 billion to FX fluctuations

In related news, Legit.ng reported that Dangote Group reported a major financial crisis in 2024 after three of its listed subsidiaries recorded combined FX losses amounting to N423 billion.

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UBA, Zenith, GTBank, 2 other banks hit N3.3 trillion in profit in 2024

This figure was revealed in the 2024 financial reports of Dangote Cement, Dangote Sugar Refinery, and NASCON Allied Industries.

Experts have recommended that the group hasten its backward integration programmes and reduce reliance on the import of raw materials to hedge against future FX losses.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng