Lafarge Africa Expands Cement Capacity in Nigeria, Cement Prices Expected to Drop

Lafarge Africa is set to boost cement production capacity at its Ashaka and Sagamu plants in Nigeria, with upgrades expected to increase Ashaka's output by 2 million metric tons annually and Sagamu's by 3.5 million metric tons. This move is anticipated to raise Lafarge Africa's total installed capacity beyond its current 10.5 million tons per year across four plants nationwide.

The expansion is a significant investment in the Nigerian cement market, known for tight supply dominated by Dangote Cement, BUA Cement, and Lafarge Africa. The increased capacity is aimed at easing supply constraints, particularly in regions served by the Ashaka and Sagamu facilities, reducing shortages that often disrupt construction activities, especially during peak building seasons.

While the expansion may lead to a moderation in cement prices, broader structural changes are needed to ensure sustained affordability for consumers. Additionally, billionaire Dahiru Mangal has opened a new cement factory in Kogi State, requiring a substantial investment that exceeds the initial estimate.