Dangote, BUA, Other Cement Manufacturers Agree to Crash Prices For Government Projects

• Top cement manufacturers in Nigeria have agreed to crash prices for federal government projects
• BUA Group Chairman, Abdul Samad Rabiu, announced the development, saying cement makers agreed upon price freezes to support the government
• He said that at N10,000 per bag, cement prices in Nigeria have remained relatively stable and internationally competitive

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Chairman of BUA Group, Abdul Samad Rabiu, has announced an agreement among top cement manufacturers to crash prices for all federal government projects.

The BUA Group boss disclosed this after a meeting with President Bola Tinubu on Thursday, May 15, 2025, saying that the move is aimed at boosting the administration’s efforts without increasing costs.

Cement manufacturers agree to crash prices

Rabiu disclosed that the decision was jointly agreed upon with Aliko Dangote, Chairman of Dangote Group, the largest cement manufacturer in Africa.

According to him, the manufacturers have agreed to freeze cement prices for any contractor involved with the government’s projects. 

The billionaire businessman said that cement prices have remained relatively steady and competitive relative to international standards despite inflation and forex.

He said at N10,000 per bag, cement prices in Nigeria are in line with international pricing, adding that high production costs due to increased energy and spare parts costs have stopped manufacturers from supporting government projects.

BUA’s managing director, Yusuf Binji, was appointed the chairman of Cement Manufacturers Association of Nigeria (CEMAN) to coordinate industry-wide compliance on price stability for government projects.

Cement makers to support government projects

The BUA Group chairman disclosed that a larger sectoral reform is being implemented to boost capacity in the construction industry.

He said that cement manufacturers have agreed to contribute between N20 to N30 per bag to revamp the Cement Technology Institute of Nigeria (CTIN) to generate N15 billion to N20 billion annually.

Rabiu said the funds will be used to train artisans, bridging the skills gap in the construction industry.

The Nation said that Rabiu said Dangote will continue to be the chairman of CTIN, while Mangal Cement’s boss, Dahiru Mangal, has been admitted into the CEMAN and CTIN circles.

Dangote, BUA, others declare massive profits 

The development came after three cement producers listed on the Nigerian Exchange Limited (NGX), Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement Plc, made a combined revenue of N677.34 billion in 2024. 

This represents an increase of 17.55% from the N576.18 billion reported in 2023. 

An analysis by Legit.ng shows that Dangote Cement remains Nigeria’s most profitable cement company, reporting a profit of N503.2 billion for the full year 2024, a 10% increase from N455.6 billion in 2023.

The group’s revenue surged by 62%, reaching N3.58 trillion in 2024, up from N2.21 trillion in the previous year. Gross profit stood at N1.9 trillion, maintaining a 54% gross margin, the same as in 2023, when it recorded a gross profit of N1.2 trillion. 

Further analysis of Dangote Cement’s financials reveals that operating profit grew by 57% to N1.15 trillion in 2024, compared to N734.3 billion in 2023.

Top 5 cement brands in Nigeria and their prices

Legit.ng earlier reported that Nigeria’s cement industry plays a crucial role in the country’s construction sector, providing essential materials for infrastructure development, real estate projects, and industrial growth.

However, the soaring cost of cement has become a significant concern for builders, developers, and even everyday consumers.

Despite Nigeria's reliance on locally sourced materials for cement production and its role as an exporter to neighbouring countries, the industry's price hikes are viewed as unwarranted.

Source: Legit.ng