Nigeria’s cement producers are increasingly relying on captive generation as unreliable grid supplies raise industrial energy costs, according to a report by Nigerian news platform The PUNCH.
Citing data from the Manufacturers Association of Nigeria, the newspaper said manufacturers spent NGN1.34trn (US$1.01bn) on alternative electricity sources in 2025, up 21 per cent from NGN1.11trn in 2024. Average daily grid availability reportedly fell from 16.7 hours in the first half of 2025 to 13.1 hours in the second half.
Dangote Cement and Lafarge Africa (now HBM Nigeria) were among the industrial companies identified as operating partly outside the electricity distribution companies’ networks. Nigerian Electricity Regulatory Commission data cited by The PUNCH attributed 105MW of generating capacity to United Cement Company of Nigeria and 90MW to Lafarge Cement WAPCO.
Dangote Industries reportedly generated around 1500MW across its operations in 2025. However, this is a group-wide figure that includes non-cement assets, notably the Dangote refinery’s 435MW power plant, rather than a measure of Dangote Cement’s generating capacity alone.
The growing cost of self-generation is placing additional pressure on cement production economics and industrial competitiveness amid ongoing concerns about cement pricing in Nigeria. Manufacturers reportedly depend heavily on gas, diesel and low-pour fuel oil to limit disruption caused by grid outages, leaving operating costs exposed to fuel prices and supply constraints.
