Nigerian cement producer Lafarge Africa Plc reported record financial results for 2025, with annual revenue crossing the ₦1 trillion (US$720 million)mark for the first time, driven by strong construction demand, operational efficiency gains and expansion investments.
The company said revenue rose 53 percent year-on-year to ₦1.1 trillion ($720 million), up from ₦696.8 billion recorded in 2024, according to its audited financial statement released on Thursday.
Profitability expanded at a faster pace, underscoring improved cost management and higher production volumes. Profit before tax surged 170 percent to ₦411.3 billion, while profit after tax climbed 173 percent to ₦273 billion compared with ₦100.1 billion a year earlier.
Chief Executive Officer Lolu Alade-Akinyemi described 2025 as a transformational year for the cement maker, citing disciplined execution of corporate strategy and sustained operational improvements.
“Reaching the ₦1 trillion net sales threshold marks a historic turning point for our company,” Alade-Akinyemi said in a statement, adding that stronger plant reliability and efficiency improvements significantly boosted operating margins.
Operating profit more than doubled during the period, rising 103 percent to ₦392 billion, reflecting what the company called “exceptional operating excellence” across its manufacturing network.
The performance comes amid renewed infrastructure activity and housing demand across Nigeria, where cement consumption has remained resilient despite currency volatility and inflationary pressures affecting production costs across the manufacturing sector.
Analysts say cement producers have benefited from price adjustments and capacity optimisation strategies aimed at offsetting higher energy, logistics and raw material expenses.
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Lafarge Africa’s growth strategy has also been supported by fresh investment following the acquisition of a majority stake in the company by China-based Huaxin Building Materials Group, which has pledged technical expertise and capital to expand production capacity.
The company announced plans to upgrade its Ashakacem plant in northeastern Gombe State and expand operations at its Sagamu facility in southwestern Ogun State. Upon completion, total installed production capacity is expected to reach 14 million metric tonnes annually.
Industry observers note that capacity expansion positions Lafarge Africa to compete more aggressively in West Africa’s fast-growing construction materials market, where governments are pursuing infrastructure-led economic development programmes.
Beyond financial performance, the company reiterated its commitment to environmentally sustainable operations under a “green growth” strategy aimed at reducing emissions intensity and improving resource efficiency in cement manufacturing — one of the world’s most carbon-intensive industries.
The strong earnings also translated into higher shareholder returns. Lafarge Africa’s board proposed a final dividend of ₦6.00 per share, five times higher than the ₦1.20 paid the previous year, signalling improved cash flow and balance sheet strength.
Market analysts say the dividend increase reflects confidence in the company’s medium-term outlook as Nigeria’s urbanisation and infrastructure deficits continue to sustain long-term demand for cement and building materials.
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The results place Lafarge Africa among Nigeria’s top-performing industrial firms in 2025, alongside consumer goods and energy companies that have posted strong nominal revenue growth amid elevated price levels.
Looking ahead, the company said it would continue pursuing volume growth opportunities while maintaining cost discipline and efficiency improvements to protect margins.
“With Huaxin’s collaboration and industrial expertise, we are optimistic about opportunities ahead,” Alade-Akinyemi said, adding that operational scale and strategic clarity would support sustainable expansion in 2026 and beyond.
The performance highlights the resilience of Nigeria’s cement sector, widely viewed as a bellwether for construction activity and broader economic momentum in Africa’s largest economy.
