Lafarge Africa is making a clear and deliberate push to strengthen its footing in Nigeria’s fiercely competitive cement market, where scale and pricing power often decide who leads and who follows. In a market dominated by Dangote Cement and increasingly challenged by BUA Cement, the company is betting that targeted capacity expansion, rather than sheer size alone, can help it win ground where demand is rising fastest.
Lafarge Africa plans Ashaka, Sagamu expansion
In a Nigerian Exchange filing, Lafarge Africa said it will expand capacity at its Ashakacem plant in Gombe State and its Sagamu plant in Ogun State. Ashaka serves northern markets, while Sagamu supplies western Nigeria, regions supported by infrastructure and private construction spending. After completion, Ashakacem’s output will rise to 2 million tonnes a year from 1 million, and Sagamu’s capacity will increase to 3.5 million tonnes from 2 million.
The expansion will lift Lafarge Africa’s total installed capacity from 10.5 million tonnes per annum to 13 million tonnes per annum. That increase brings the company closer to BUA Cement, which has announced plans to raise its own annual capacity to 20 million tonnes, even as both companies remain well behind Dangote Cement’s 52 million tonnes of installed capacity. For Lafarge Africa, the move is less about catching the market leader outright and more about tightening the gap in regions where supply and pricing remain sensitive.
Lafarge Africa revenue, profit surge
Chaired by Nigerian lawyer and businessman Gbenga Oyebode, Lafarge Africa operates four plants across the country, with facilities in Sagamu and Ewekoro in Ogun State, Ashaka in Gombe State, and Mfamosing in Cross River State. The company has built its reputation around cement and building solutions that emphasize efficiency and sustainability, themes that have increasingly resonated with both regulators and large institutional customers.
The timing of the expansion comes as Lafarge Africa posts some of the strongest financial results in its recent history. For the first nine months of 2025, the company reported revenue of N780.48 billion, or $570 million, a 63 percent increase from N479.49 billion, or $350.5 million, in the same period of 2024. Profit after tax surged 246 percent to N207.78 billion, or $151.54 million, from N60.08 billion, or $43.9 million, a year earlier. The company attributed the performance to higher sales volumes, better operational efficiency and improved currency stability, factors that have weighed heavily on Nigerian manufacturers in recent years.
Lafarge shares surge 5.1 percent on expansion plans
Investors responded quickly to the news. Lafarge Africa’s shares closed 5.1 percent higher on Feb. 4, at N165 ($0.12), up from N157 ($0.11), the previous day. The gain propelled market capitalization to N2.66 trillion ($1.94 billion), lifted year-to-date gains to 22.7 percent, and extended its one-year return to 135 percent, thanks to renewed confidence in its growth plans.
For Lafarge Africa, the expansion of Ashakacem and Sagamu is a statement of intent in a market where competition is measured not just in tonnes produced but in proximity to customers and reliability of supply. As Dangote Cement and BUA Cement continue to boost capacity, Lafarge Africa is choosing a focused path, reinforcing its presence where demand is strongest. Its financial results already show that execution, not size alone, still matters.
