HBM demands ₦250 million from distributors as cement battle with Dangote and BUA intensifies
By Aboki Forex —
Chinese-owned HBM has opened a distributor recruitment drive that requires applicants to show at least ₦250 million in working capital, as the cement maker expands production and fights Dangote Cement and BUA Cement for a bigger share of Nigeria's market.
The company, formerly Lafarge Africa, also wants prospective distributors to provide a 500-square-metre warehouse and access to five 20-tonne or 40-tonne trucks. Successful applicants will pass through a Business Development Academy.
Why the entry bar is so high
The requirements have shifted since Lafarge Africa's 2020 recruitment, which asked for cement-market knowledge, proof of financial net worth and limits on borrowed capital. The new HBM offer puts more weight on capital, warehousing and transport.
The headline ₦250 million is not the full bill. An analysis estimates that a distributor buying warehouses and trucks could end up needing between ₦595 million and ₦1.25 billion. At an assumed ex-works price of ₦8,500 per bag, ₦250 million buys about 29,400 bags, or roughly 1,471 tonnes.
The push comes as HBM lifts installed capacity from 10.5 million tonnes per annum to 14 million tonnes through projects at Sagamu and Ashaka. More capacity means more cement to move, and that requires a wider distribution network.
Who controls the market
Competition among the three listed producers is tight. A Proshare computation from half-year 2026 financial statements shows Dangote Cement taking 56.2% of the Nigerian revenue reported by the three companies. BUA Cement accounted for 22.7%, while HBM stood close behind at 21.1%.
Those figures are shares of reported Nigerian revenue, not volume-based market share, and they may reflect differences in pricing and product mix.
Capacity is where the gap is widest. Installed capacity across the three producers stands at about 62.75 million tonnes annually, while estimated domestic consumption is only 25 million to 30 million tonnes. Announced expansion projects could push capacity to roughly 75.25 million tonnes, or about two-and-a-half to three times current estimated demand.
Exports offer one outlet. Dangote Cement's Nigerian cement and clinker exports rose 62.3% to 1.1 million tonnes in the first half of 2026.
What builders are paying
A 50kg bag of cement currently sells for between ₦12,500 and ₦15,000, against about ₦5,500 to ₦6,000 in 2023. At the midpoint of the current range, 100 bags cost approximately ₦1.375 million, compared with around ₦575,000 on the 2023 midpoint. That is ₦800,000 more for the same 100 bags.
The pressure lands on a country with a housing deficit of more than 16 million units. Nigerian cement prices are estimated at roughly 2.16 times the midpoint average of Ghana, Kenya, South Africa and Egypt, though exchange rates, taxes, product specifications and delivery structures make direct comparisons difficult.
The Federal Competition and Consumer Protection Commission has deepened its scrutiny of the industry, issuing Notices of Commencement of Investigation and Summons to Produce to Dangote Cement, BUA Cement and HBM Nigeria as prices climbed beyond ₦15,000 per bag in some locations.
For Nigerian builders, the question is whether a fiercer fight between Dangote, BUA and their Chinese-owned rival will eventually show up as cheaper cement at the retail end. So far, the ₦250 million entry fee says the battle is being fought for distribution, not on price.