Nigeria’s Cement Market Set to Hit $1.44bn by 2025

By Guest Writer

30 November 2025

Business

By SAMUEL MOBOLAJI

Nigeria’s cement industry is on a firm expansion path, with new projections indicating the market will reach $1.44 billion by 2025 as annual growth accelerates across construction and infrastructure corridors.

According to the latest industry data, the sector recorded a robust Compound Annual Growth Rate of 9.4 per cent between 2020 and 2024, reflecting sustained demand despite economic volatility and rising input costs.

Forward-looking estimates show the market maintaining strong momentum, expanding at a 7.9 per cent CAGR between 2025 and 2029. By the end of 2029, the industry’s value is expected to jump from $1.33 billion in 2024 to approximately $1.96 billion, underlining cement’s central role in Nigeria’s long-term development and industrialisation.

The sector continues to serve as a backbone of national growth, driven by public infrastructure projects, urban housing needs, and ongoing import substitution initiatives. Nigeria’s largest producers, supported by integrated local operations, have been able to meet demand even as currency pressures, energy price fluctuations and logistics constraints weigh on production costs.

Producers are increasingly shifting towards operational efficiency and resilience. Investments in alternative fuels, digital logistics tracking, and energy optimisation are helping companies manage volatility while supporting sustainability commitments. Public-sector demand remains the industry’s most reliable buffer, though private-sector construction has slowed due to high inflation and limited mortgage access.

Industry analysts note that the country’s cement outlook will depend heavily on regulatory reforms, energy stability, and sustainable resource management. As government efforts to stabilise the macroeconomic environment continue, cement manufacturers are positioning for long-term competitiveness through cost control, improved supply-chain efficiency and environmental compliance.

Nigeria’s cement sector remains vital to national infrastructure delivery and industrial diversification. With structural reforms taking hold and demand expected to rise further, the industry is well-placed to support inclusive, climate-aligned economic growth through the decade.