Nigeria could be entering the beginning of a growth cycle, suggests research from RMB Nigeria Stockbrokers (RMBNS). Cement consumption has been forecast to increase by seven per cent in 2018, compared with a 17 per cent decline recorded in 2017. Concrete roads and a housing deficit may lead to a 53Mt and 24Mt increase, respectively by 2020.

"RMBNS see improving government capex commitment and implementation as well as ongoing public-private partnership infrastructure financing initiatives as positives for cement demand. Furthermore, RMBNS expects stronger consumption growth at 12 per cent Compound Annual Growth Rate over 2018e-23E," said Gbenga Sholotan, head of research at RMBNS. 

Furthermore, Mr Sholotan noted that BUA’s 3Mta Obu II plant may begin operations in 2018 and cause a fall in cement prices.