In this report, we analyzed the Nigerian cement sector as well as the key players in the space.
Competitive Landscape of the Nigerian Cement Industry
The Nigerian cement sector is Oligopolistic, with three major cement producers leading the charge to cater for cement demand in the most populated country in Africa. Before the entry of BUA Cement and its acquisition of the Cement Company of Northern Nigeria, CCNN (Sokoto Cement) and the Edo Cement Company, Dangote Cement and Lafarge (WAPCO) were the major cement industries in Nigeria. The entrance of BUA Cement into the cement space heightened competition and increased the country’s production capacity. Dangote Cement is still the leading cement company in Nigeria and Africa, with its footprint across 10 African countries.
Dangote Cement, over time, has capitalized on its high production capacity, wide presence across Nigeria and Africa and price-making ability to establish its leadership in the industry. Between 2018 and 2021, these companies recorded a Compounded Annual Growth Rate of 11.8%). BUA Cement recorded the fastest growth with a CAGR of 21.3%, while Dangote Cement and LAFARGE recorded a CAGR of +11.3% and +7.7%, respectively. We ascribe BUA Cement’s fast growth to the strategic acquisition of CCNA in 2019.
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