New $600m Nigerian Cement Giant to Rival Dangote, BUA as Industry Competition Heats Up
- MSM Group has unveiled plans to open a 12 million-ton cement factory in Kebbi State to drive competition in the sector
- The new cement factory is estimated to cost about $600 million and is part of MSM Group’s diversification strategy
- Before now, MSM Group has been a significant player in Nigeria’s oil and gas sector, managing Oil Mining Lease (OML) 98
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Nigeria’s cement industry is set for another shake-up as MSM Group announced it is on track to build a $600 million cement factory with a production capacity of 12 million tons annually.
The project, located in Kebbi State, is part of the company’s long-term investment strategy to diversify into the manufacturing sector.
Source: Getty Images
Speaking at a press briefing in Abuja, MSM Group Chairman Muazzam Mairawani revealed that the facility will be executed in clusters, with each cluster valued at about $600 million.
Expanding beyond oil and gas
He added that the initiative will not only boost Nigeria’s local production capacity but also support the federal government’s push for industrialisation and job creation.
Since its establishment in 2017, MSM Group has been a significant player in Nigeria’s oil and gas sector, managing Oil Mining Lease (OML) 98.
According to Mairawani, the company has grown its reserves from 118 million barrels to 244 million barrels within six months through strategic exploration.
“Our growth has been driven by technical expertise and the experience of our team, many of whom have over three decades of exposure in the upstream sector,” Mairawani explained.
“We are transparent in our operations and open to scrutiny from anti-graft agencies.”
He further disclosed that the company is closing an Initial Public Offering (IPO) in the United States through MSM Frontier Capital Acquisition, expected to raise $225 million.
The group plans to invest a total of $2.7 billion in Nigeria across multiple sectors.
Cement market faces rising competition
MSM’s entry into cement manufacturing comes at a time of intensifying competition.
For years, Dangote Cement and BUA Cement have dominated the market, controlling supply and pricing power.
However, the landscape is shifting with new entrants.
Earlier this year, Mangal Industries commissioned its own cement plant in Kogi State, positioning itself as another challenger to the market giants.
Industry analysts note that MSM’s Kebbi project, once completed, could tilt market dynamics further by adding significant supply capacity and giving consumers more choices.
Implications for Nigeria’s economy
Nigeria’s demand for cement has remained high, driven by urbanisation, housing needs, and infrastructure development.
The entrance of new players like MSM and Mangal is expected to lower consumer prices in the long run while creating thousands of jobs.
The Central Bank of Nigeria (CBN) has also identified the cement industry as crucial for economic diversification, reducing reliance on imports, and stabilising the naira.
By scaling up capacity, companies such as MSM are not only competing for market share but also contributing to Nigeria’s broader economic growth agenda.
A new era for the cement industry
Industry watchers believe MSM’s bold entry will accelerate competition and possibly spark another wave of price adjustments, similar to the effects seen when BUA broke Dangote’s near-monopoly years ago.
Source: Getty Images
“With MSM, Mangal, Dangote, and BUA now in the race, Nigeria’s cement industry is heading into a more competitive era,” one industry expert noted. “This could be the beginning of a pricing revolution in the sector.”
Chinese firm seals deal to acquire Nigerian cement company
Legit.ng earlier reported that Huaxin Cement Company, the Chinese firm expected to buy out Holcim’s 83% stake in Lafarge Africa, has reportedly valued 100% of the company’s shareholding at $1.6 billion.
The group will spend $838.8 million in acquiring Holcim’s stake in Lafarge Africa, estimating the company's enterprise value to be between $1.06 billion and $1.59 billion.
According to a report by Business Day, the company's valuation was disclosed in its filing on the Hong Kong Exchange.
Source: Legit.ng
