Amid the harsh operating environment, the combined valuation of Dangote Cement and BUA Cement surged by 163.7 per cent between 2020 and 2025.

Despite a turbulent macroeconomic environment marked by a depreciating naira, high inflation and rising production costs, the cement giants have not only weathered the storm but have also thrived, reinforcing their dominance in the Nigerian and West African markets.

Dangote Cement and BUA Cement market capitalisation, which stood at N2.98 trillion and N1.18 trillion, respectively, as of 2020, rose steadily to N8.1 trillion and N2.83 trillion as at the close of trading on March 31, 2025, representing a combined 162.7 per cent growth.

Dangote Cement is currently the second most valuable stock on the NGX with a market capitalisation of NGN 8.1 trillion, which makes up about 12.2 per cent of the entire Nigerian Exchange equity market and trading at N480.

BUA Cement closed its last trading day as of Friday, March 28, 2025, at N83.70 kobo on the Nigerian Exchange Limited (NGX) and is currently the seventh most valuable stock on the NGX with a market capitalisation of NGN 2.83 trillion, which makes about 4.28 per cent of the NGX equity market.

A major driver behind this extraordinary growth is the sustained demand for cement, fuelled by an infrastructure boom and rapid urbanisation. As Nigeria continues to push for road construction, housing development, and railway expansion, cement remains a crucial commodity.

Also, government-backed projects and private sector investments in real estate have ensured that demand remains strong, providing a solid revenue base for both companies. Even in the face of economic challenges, cement remains a non-negotiable requirement for infrastructural development, and both companies have positioned themselves as the foremost suppliers.

Another significant factor contributing to their valuation surge is their ability to strategically adjust pricing to counter rising costs.

Inflationary pressures, particularly in energy and transportation, have significantly increased production costs.

However, both companies have managed to pass on these costs to consumers through price adjustments without experiencing a substantial drop in demand. The pricing strategy has allowed them to maintain healthy margins and sustain profitability even in tough times.

Beyond local demand, export expansion has played a crucial role in revenue growth. Dangote Cement and BUA Cement have leveraged Nigeria’s position within the West African region to push exports to neighbouring countries.

By tapping into regional markets, they have been able to generate foreign exchange earnings, mitigating some of the adverse effects of naira depreciation.

However, operators have argued that while Dangote Cement and BUA Cement have demonstrated remarkable resilience, sustaining this growth will require a combination of government intervention, strategic corporate decision-making and continued investor confidence.

This is because, despite these remarkable gains, the foreign exchange crisis remains a significant challenge. The depreciation of the naira has made it increasingly expensive to import machinery, spare parts, and some raw materials required for cement production.

For instance, in the first half year (H1) of 2024 alone. Dangote Cement suffered an FX loss of N201.3 billion against N113.3 billion recorded during the same period in 2023. Also, the company recorded FX losses of N249 billion from its international operations in its 2024 operations.

BUA Cement was not spared as the firm also incurred N188 billion FX losses incurred by BUA Foods, up from N81.8 billion in 2023.

For companies with dollar-denominated debts, the rising cost of servicing these obligations continues to eat into profits. These currency-related challenges make it imperative for the government to step in with targeted interventions to sustain the current growth momentum.

To ensure that Dangote Cement and BUA Cement continue on this upward trajectory, an independent investor, Amaechi Egbo, said the government must take decisive actions to address key industry challenges.

“One critical area is foreign exchange stability. The government needs to improve forex liquidity by ensuring that manufacturers have stable access to foreign exchange. Encouraging export earnings repatriation and offering incentives for companies bringing in forex through exports can help alleviate currency pressures.”

Another key area that demands urgent intervention, according to him, is the local production of critical raw materials.

He pointed out that the government can support local industries by incentivising research and development for alternative materials and promoting policies that encourage the domestic production of these key inputs.

President of the Independent Shareholders Association of Nigeria, Moses Igbrude, said energy costs remain a major hurdle for cement producers, given the industry’s high energy demands.