Following widespread complaints by Nigerians over the rising cost of cement and calls for government intervention, the Chairman of Dangote Cement Plc, Mr. Emmanuel Ikazoboh, has attributed the frequent increase in cement prices to high energy costs and the dollar-denominated cost of gas used in production.
According to him, energy accounts for about 60 per cent of the cost of producing cement, while gas is purchased in United States dollars, making production more expensive as the naira depreciates.
Findings show that the price of a 50kg bag of cement in Nigeria currently ranges between ₦9,500 and ₦13,000, depending on the brand, location and retailer. Dangote Cement typically sells for between ₦10,000 and ₦12,500, while BUA and Lafarge products retail for between ₦8,500 and ₦10,500. Prices vary based on proximity to manufacturing plants, transportation costs and other logistics expenses.
Ikazoboh made the remarks during the 17th Annual General Meeting (AGM) of Dangote Cement Plc held in Lagos.
He also noted that the higher prices paid by consumers could be influenced by distributors’ mark-ups resulting from logistics, transportation and warehousing costs.
He said:
“On the price of cement, one thing you must understand is that to produce a bag of cement, we need energy, which constitutes about 60 per cent of the production cost. To generate that energy, we use gas, coal or diesel.
“Gas is sold to us in US dollars, and its price continues to increase. We all know the impact of the exchange rate between the dollar and the naira. As a result, the cost of generating energy keeps rising.
“We are doing our best to cooperate with shareholders, government and regulators to ensure that we sell at the lowest possible price. The difference between our factory price and what distributors sell at is another matter. From the factory, we sell at the best possible price.”
Meanwhile, shareholders of Dangote Cement Plc commended the board, management and staff for the company’s outstanding 2025 financial performance, which saw its profit after tax exceed ₦1 trillion for the first time.
A shareholder, Mrs. Bakare Adebisi Oluwayemisi, praised the company’s resilience despite macroeconomic challenges.
She said:
“I want to commend the board, management and staff of Dangote Cement Plc, Africa’s leading cement manufacturer, for an exceptional performance in 2025 despite the macroeconomic challenges. The profit was driven by increased cement sales, improved product prices and higher export proceeds. This is highly commendable.”
She also lauded the company’s financial performance, noting that revenue grew by 20.3 per cent to ₦4.30 trillion, while profit after tax surged by 101 per cent to ₦1.01 trillion, compared with ₦503.2 billion in 2024.
“This is the first time our profit after tax has crossed the ₦1 trillion mark. Let us appreciate the board and management for this excellent performance,” she added.
Another shareholder, Dr. Farouk Umar, also applauded the company’s 2025 performance and commended the leadership of Alhaji Aliko Dangote for driving profitability.
He said:
“Mr. Chairman, I want to commend you on the historic profitability of over ₦1 trillion. Between 2024 and 2025, you reduced our borrowings by 50 per cent, which has improved profitability because we are paying less to commercial banks.”
He also praised the company’s logistics efficiency and continued expansion across Africa.
“We are expanding into countries such as Côte d’Ivoire. This is positioning Dangote Cement as a truly global company that will continue to deliver greater profitability.”
At the meeting, shareholders unanimously approved a dividend of ₦45.00 per share for the 2025 financial year, representing a 50 per cent increase over the previous year’s payout.
