Dangote Cement and BUA Cement spent a combined ₦797.1 billion on energy in the first nine months of 2026. That single figure explains more about the price of a bag of cement than any commentary on profit.
The numbers are from the two companies’ unaudited financial statements for the period ended 30 September 2026.
The energy bill
| Company | Energy cost, 9 months to Sept 2026 | Change on 2025 |
|---|---|---|
| Dangote Cement | ₦580.5 billion (fuel and power) | +2.0% from ₦569.0bn |
| BUA Cement | ₦216.6 billion | +21.5% from ₦178.2bn |
| Combined | ₦797.1 billion | +6.7% from ₦747.2bn |
| HBM Nigeria (ex-Lafarge) | ₦226.3 billion production variable costs | +4.2% |
HBM’s figure is not directly comparable: it bundles fuel, power, raw materials and consumables, and books some electricity under fixed costs.
What energy means for a cement maker
Two things, and only one of them can be fixed by better infrastructure policy.
Kiln fuel. Cement is made by heating limestone to over 1,400°C to produce clinker. That heat comes from gas, coal, low-pour fuel oil and, increasingly, waste-derived fuels. No amount of grid improvement replaces it.
Electricity. Crushers, mills and packing plants run on power. This is the part a reliable grid could supply – and currently does not.
The industry has built its own grid
This is the detail that reframes the whole story. Nigeria’s largest cement makers do not buy their power. They generate it.
Dangote Cement has at least 345MW of captive capacity across four Nigerian plants: Obajana in Kogi (135MW), Ibese in Ogun (about 111MW), Okpella in Edo (60MW) and Gboko in Benue (about 38.5MW). The plants can run on gas, coal or fuel oil.
BUA Cement has an estimated 240–280MW, mostly gas-fired. Its Sokoto plant runs 120MW of engines on liquefied natural gas, and the Nigerian Electricity Regulatory Commission granted a further 12MW permit for the site in the first half of 2026.
Together that is well over 600MW of generation built, financed and fuelled by two cement companies – because the national grid could not be relied on to run a factory.
Why that matters to what you pay
Every naira of that ₦797.1 billion is a cost the cement maker carries into the price of the bag.
Compare it with the retail price we track:
| Measure | Figure |
|---|---|
| Cement, average across major brands | ₦11,000 a bag (BusinessDay, 20 Oct 2026) |
| Cement, retail in many locations | ₦13,500–15,000 a bag (Leadership, 23 Oct 2026) |
| Price agreed between manufacturers and government | ₦7,000–8,000 |
| Diesel, January 2026 | ₦850–900 a litre |
| Diesel, now | about ₦1,700 a litre |
The gap between the agreed ₦7,000–8,000 and the ₦11,000–15,000 being paid has a cause, and this is it. Diesel roughly doubled in a year. Gas, coal and captive generation all cost more. A manufacturer cannot absorb that and hold a price agreed in a different energy market.
What this means if you are building
Do not budget cement at the agreed price. The ₦7,000–8,000 figure has not been the price paid at the depot for some time. Budget at the retail end and treat any lower quote as a bonus.
Expect the price to stay high. Energy is the structural cost, not a monthly fluctuation. Until the grid can carry industrial load, self-generation remains part of every bag’s price.
Buy in stages, not all at once. If you are building over a year, buying cement as you go exposes you to price rises; buying upfront locks capital into a material that stores well. Both have a cost – decide deliberately rather than by default.
Ask for the cement brand and grade in the quote. At this spread, a contractor quoting ₦9,000 a bag may be specifying a different grade or brand than the one you assumed.
Watch diesel, not just cement. On a self-build, diesel for the mixer and the generator adds a line to the budget that the cement price does not capture.
What is not established
These are unaudited nine-month figures, not full-year audited accounts. The combined ₦797.1 billion covers Dangote and BUA only; HBM’s ₦226.3 billion is a different measure and is not added to it.
No company discloses energy cost per tonne of cement, so it is not possible to state how much of the retail price of a single bag is energy. The link between the two is established; the precise share is not.
Sales volumes for the period have not been set against the energy figures here, so cost per bag cannot be calculated from this article.
Frequently asked questions
How much do Nigerian cement makers spend on energy?
Dangote Cement and BUA Cement spent a combined ₦797.1 billion in the first nine months of 2026, up 6.7% on the same period of 2025.
Why is cement so expensive in Nigeria?
Energy is the dominant input. Kilns must reach over 1,400°C, and the electricity to run the plants is self-generated because grid supply is unreliable.
How much power do the cement companies generate themselves?
Dangote has at least 345MW across four Nigerian plants; BUA has an estimated 240–280MW, including 120MW at Sokoto running on LNG.
Will cement get cheaper?
Not while energy costs rise. BUA’s energy bill alone rose 21.5% year on year.
Last updated: 4 November 2026. The ₦797.1 billion combined energy spend, Dangote’s ₦580.5 billion, BUA’s ₦216.6 billion, the percentage changes, HBM’s ₦226.3 billion variable costs, and the captive generation capacities and plant breakdowns are from Nairametrics’ report of 4 November 2026, based on the companies’ unaudited financial statements for the nine months ended 30 September 2026. Cement retail ranges are from BusinessDay (20 October 2026) and Leadership (23 October 2026); the diesel range is from BusinessDay (20 October 2026). No energy cost per tonne or per bag has been published.
