HBM Expands Distributor Network Amid Cement Price Surge

HBM is increasing its efforts to compete with Dangote Cement and BUA Cement for a larger share of Nigeria's cement market. The company is launching an aggressive distributor recruitment campaign, requiring prospective distributors to have at least ₦250 million in working capital, a 500-square-metre warehouse, and access to five 20-tonne or 40-tonne trucks.

Currently, retail prices for a 50kg bag of cement range from ₦12,500 to ₦15,000, significantly higher than the ₦5,500 to ₦6,000 range in 2023. This price increase adds approximately ₦800,000 to the cost of 100 bags, exacerbating the construction cost challenges amid Nigeria's housing deficit of over 16 million units.

HBM, formerly Lafarge Africa, is expanding its production capacity from 10.5 million tonnes per annum to 14 million tonnes. This expansion is crucial as Nigeria's total cement production capacity is projected to reach approximately 75.25 million tonnes, while domestic consumption is estimated at only 25 million to 30 million tonnes.