Nigeria’s cement market faces low consumption, high costs - Punch Newspapers

Stakeholders in the nation’s building materials manufacturing industry have argued that Nigeria’s cement consumption per capita is among the lowest globally. The Chief Executive Officer of HBM Nigeria, Mr Lolu Akingemi-Alada, disclosed this over the weekend in Lagos while speaking during a question-and-answer session at the Experiencing Panterra event. The event, which featured an award presentation to the foundation’s 2026 finalists, Panterra report launch, Panterrium investment management, product launch, among others, brought together industry stakeholders. Speaking during the event, Akingemi-Alada, who was represented by the General Manager, Readymix Concrete at HBM, Emmanuel Ilaboya, stressed that there is a huge opportunity in the sector, admitting that there are nuances in the sector as well. “If you look at the cement consumption per capita today in Nigeria, it’s still one of the lowest in the world. In fact, if you compare it to other African countries. And I will give you a good example: the cement per capita in Nigeria today is below 150kg. If you go to Egypt, it’s about 500kg; South Africa is about 700kg. What that tells you is that there is a huge opportunity,” Akingemi-Alada said. He highlighted that the capacity utilisation per manufacturer is still between 20 and 30 per cent, adding, “I think there’s a lot of things we can do, to be honest.” Akingemi-Alada blamed the high cost of the product on the impact of the exchange rate.See more Punch stories on Google.Add Punch on Google “And especially for the cement and concrete industries, where the majority of what we use to produce is imported. In fact, the gas and the oil, despite the fact that they are made locally, will be paid in dollars,” he said. He pointed out that the exchange rate has been stable for some time now, making it possible for manufacturers to predict and plan. “The good news is, I think, for the better part of the last year, we have had a fairly stable exchange rate which allows you to predict. I mean, the discussion is not whether it’s high or low. I am talking about the fact that it’s been stable. So, which means you can go there; you can forecast,” he added. Akingemi-Alada maintained that the company is committed to ensuring that the effects of the importation of the raw materials are not passed on to customers in terms of operational efficiency. He added that the company is ranking between seven and eight on the stock exchange market in terms of capitalisation. Fiscal, monetary coordination deepens as Nigeria battles inflation AXA Mansard: Nigeria’s insurance gap leaves economy exposed to shocks Nigeria’s energy crisis killing business On why cement is expensive in Nigeria, he blamed it on power, adding that most companies do not rely on the national grid for power supply but rather build their own power plants, which is capital-intensive. “In many of these countries that are compared to Nigeria, the power comes from electricity from the grid. There is no cement manufacturer in Nigeria that can rely on that. You have to build your own power plant, you know, to produce the power that you can use, that costs money,” he highlighted. According to him, when your cost component is so exposed to foreign exchange, it becomes a bit difficult. In his welcome address, the Chief Executive Officer of Panterra, Tayo Odunsi, stated that investors demand transparency, not just honesty. He maintained that one sector that needs to understand the difference between honesty and transparency, and the dire need for transparency more than most, is real estate. “Our sector is so opaque; there is no standard repository for information. Today, with our clients, investors, friends and families in attendance, we are pleased to launch two key reports that provide insights and transparency on the Nigerian construction market as well as the West African property market,” Odunsi said. Odunsi pointed out that Panterra is a regulated fractional real estate investment product, adding, “Everything we do at Panterra has people at the centre, and we will cherish your thoughts and feedback on all we share with you today. With that, I welcome you to express a bit of our work in Panterra.” Also speaking, the Chief Investment Officer at Panterra, Mr Ayo Ibaru, in his presentation, explained that currency stability, financing depth, Global South partnerships and security now drive West African real estate performance. Ibaru stated that local capital and builders are increasingly financing the region’s growth. “Growing regional self-financing plus Gulf, Turkish and Asian capital is diversifying the investor base away from Western sources,” Ibaru said. He said that the Dangote Refinery has made the Lekki Free Trade Zone one of the region’s most active industrial corridors and signals that indigenous capital views Nigerian infrastructure as investable. While emphasising that the $15.6bn Abidjan-Lagos Corridor will link five countries and an urban population of 173m by 2050, creating major real estate opportunities, Ibaru argued that despite risks, local and Global South capital is underwriting infrastructure at scale, generating opportunities in industrial zones, port cities and logistics corridors. Anozie Egole Anozie is a Chief Correspondent at Punch Newspapers with over 13 years of experience covering entertainment, maritime, and transport sectors. He specializes in producing insightful, engaging stories that provide clarity and depth across his beats. Anozie’s work reflects substantial newsroom experience and a strong commitment to accurate and compelling journalism.

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