Lafarge Africa’s plan to boost production at two of its manufacturing sites has stirred optimism in the equities market and renewed debate about cement supply and pricing in Nigeria.

Following the announcement on Wednesday, February 4, 2026, the company’s shares climbed 5.1%, snapping out of a flat run at N157 that had lasted since late January.

The stock finished trading in Lagos at N165, while investor interest surged. Trading volume jumped nearly tenfold to 10.5 million shares, the highest level recorded in at least ten days.

In a disclosure to the Nigerian Exchange, the cement producer said it is preparing to expand operations at its Ashaka and Sagamu plants. Once completed, the upgrades are expected to lift Ashaka’s output to 2 million metric tonnes annually and Sagamu’s to 3.5 million metric tonnes.

Together, the projects will raise Lafarge Africa’s total installed capacity beyond its current 10.5 million tonnes per year, which is spread across four plants nationwide. The expansion marks one of the first major production investments since Huaxin Cement of China acquired a controlling 83.8 per cent stake in Lafarge Africa from Holcim last August.

What higher capacity could mean for cement availability

Nigeria’s cement market has long been characterised by tight supply, driven by high entry barriers and the dominance of just three producers: Dangote Cement, BUA Cement and Lafarge Africa.

By expanding capacity at two key plants, Lafarge could modestly ease supply constraints, particularly in regions served by the Ashaka and Sagamu facilities.

Improved availability may reduce the frequency of shortages that often disrupt construction activity, especially during peak building seasons.

While the expansion alone is unlikely to transform national supply dynamics, it could help stabilise distribution and reduce pressure on existing plants that are operating close to capacity.

Implications for cement prices

Cement prices in Nigeria have remained elevated for years, supported by import restrictions and regulatory policies that shield local producers from foreign competition.

Additional capacity from Lafarge could introduce mild price competition, particularly if output growth outpaces demand in certain regions.

However, analysts note that any meaningful price relief for consumers would likely require broader structural changes, including increased competition or policy shifts those lower barriers to entry.

Financially, Lafarge Africa remains in a strong position. In the nine months to September, the company’s profit after tax surged 246% to N208 billion, while revenue rose sharply to N780.5 billion from N479.5 billion in the same period a year earlier. Return on equity also strengthened significantly, climbing to 33 per cent from 12.9%.

For now, investors appear to be betting that higher output will support continued growth, while consumers watch closely to see whether increased capacity eventually translates into more affordable cement.