Despite short-term macroeconomic challenges, Nigeria’s demand for cement is expected to expand significantly in the longer term. Investments in infrastructure, population growth and private-sector led initiatives are all expected to drive growth going forward, spurring domestic producers to invest heavily in new cement production capacity. By Damilola Lawal, CardinalStone Partners Ltd, Nigeria.
Nigeria has undergone a dramatic reversal of fortune since its GDP rebasing exercise which resulted in the country becoming Africa’s biggest economy in 2014. The rebasing process reflected the need to suitably capture the underlying diversification of the domestic economy, which is now creating jobs for the services, manufacturing and telecommunication sectors. These industries have significantly increased their contribution to economic output since 2010 and have reduced Nigeria’s dependence on its oil sector.
