Traders Sell Bag of Cement at New Prices As Dangote, BUA, Lafarge Make Over N2trn From Sales

• Nigerian cement makers, including Dangote Cement, recorded a combined revenue increase in 2023
• The increased revenue reflects not only the rise in construction activities but also the increase in cement prices from the previous year
• On the customers' side, there is also good news, as traders have decided to reduce cement prices in some northern states

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigeria's top cement producers, Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement, have announced a combined revenue of N2.35 trillion for 2023.

Breakdown of cement sales

Analysis showed that Dangote Cement continued to stand out as Nigeria's most profitable cement company, boasting the highest revenue of N2.21 trillion.

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BUA Cement also saw its revenue increase to N459 billion in 2023, while Lafarge Africa's revenue rose to N405 billion.

A further breakdown of the cement companies' financials revealed that only Dangote Cement recorded a positive profit after tax (PAT) for the year, as the depreciation of the naira hit other cement manufacturers, Punch reports.

Dangote Cement's PAT appreciated by 19.17% to N455.58 billion from N382.31 billion in the previous financial year.

The profit after tax of BUA Cement declined by 31% to N69.4 billion from N101.01 billion recorded in 2022.

Cement price reduction in northern states

Legit.ng earlier reported that there is a respite for residents of northern states as the official price for a bag of cement now stands between N8,000 and N9,500.

This is a significant drop from the N10,500 and N15,000 cement prices quoted in Lagos and Ogun states.

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Businessday reports that states that have currently experienced reduction include the Federal Capital Territory (FCT), Niger, and Nasarawa states.

The current prices for major cement brands in these states are as follows:

• Dangote Cement is between N8,000 and N9,500
• Lafarge Cement is between N8,000 and N9,300
• BUA Cement stands at N7,500 to N9,000.

Cement seller refunds customer's N400

In a similar report, a Nigerian man said he bought cement at N8,200 per bag in Kaduna state, where he lives.

However, when he got home, he received a phone call from the cement seller informing him the price had been reduced to N7,800 per bag.

Ahmad Kargi said he was surprised when the cement seller offered him his N400 balance even after he had left the shop.

Source: Legit.ng