Faith Nyasuguta
Dangote Cement Plc, the flagship of Africa’s richest businessman, Aliko Dangote, surprised the market with a stunning rebound in earnings in the second quarter of 2025. Net income more than tripled year on year, jumping from 76.6 billion Naira in Q2 2024 to a record 309 billion Naira (US$ 202 million) in Q2 2025, a surge not seen in nearly six years.
This dramatic growth came despite a modest 1.4% drop in sales volume, as Q2 revenue rose 14-15% thanks to higher cement prices and a relatively stable naira exchange rate averaging around 1,550 Naira per US dollar. The result: operating leverage that boosted margins as costs held steady.
Compounding the win: Dangote Cement posted zero foreign exchange losses in H1 2025 – an impressive turnaround from a 201 billion Naira loss in the same period last year.
While Dangote charted a course toward expansion, the leadership helm changed hands this month. Aliko Dangote formally stepped down as chairman, entrusting the company’s future to new leadership as he refocuses on his $20 billion refinery, petrochemical, and fertilizer ventures. The change appears strategic rather than disruptive, with analysts calling it a structured transition rather than instability.
Sector strength is broad‑based. Rival BUA Cement Plc, owned by billionaire Abdul Samad Rabiu, posted an equally impressive turnaround in Q2: net profit soared five fold to 180.9 billion Naira, highlighting robust sector fundamentals driven by infrastructure demand and exchange relief.
At a macro level, Nigeria’s cement sector posted combined H1 revenue of about 3.2 trillion Naira, up by 28%, while aggregate profit after tax for Dangote, BUA, and Lafarge Africa jumped ~229% YoY to 833 billion Naira . Dangote Cement led with a 520.5 billion Naira PAT, up 174% YoY, already surpassing its full-year 2024 result.
This boom is underpinned by increased public investment in roads and real estate projects like the 700 km Lagos coastal highway and strong demand in Nigeria’s real estate sector, which accounts for a third of GDP.
On operational capacity, Dangote Cement still leads across Africa with 48.6 Mt/a installed capacity, split between 32.3 Mt/a in Nigeria and 16.3 Mt/a across nine other countries including Tanzania, South Africa, Ethiopia, Ghana, Cameroon, Republic of Congo, Senegal, Zambia, and Sierra Leone.
Expansion continues apace: in March 2025, Dangote resumed construction of an $800 million, 6 Mt/a plant at Itori in Ogun State, Nigeria. Completion is expected by November 2026, boosting capacity and export potential.
Meanwhile, BUA Cement is also growing fast it expanded its full-year 2024 capacity from 11 to 17 Mt/a and is constructing an Ososo plant targeting 3 Mt/a by early 2027, aiming for 20 Mt/a in total .
In short, Dangote Cement’s record Q2 2025 earnings reflect more than just a currency reprieve – it marks a strong performance in pricing, margins, expansion, and market positioning. With public infrastructure projects fueling demand across Nigeria and neighboring markets, and cement producers consolidating capacity and pricing power, the sector is firmly on track for its most profitable year in recent times.
Looking ahead, investors and analysts will be watching the commissioning of the Itori plant and broader FX management strategies, but with mid-year profits already eclipsing prior year totals, Dangote Cement remains the industry benchmark and a vital proxy for Nigeria’s industrial growth.
RELATED:
