Three Nigerian cement makers are expanding gas-powered transport and refueling capacity as BUA reports wider margins and Dangote's Group haulage costs climb, illustrating the cost trade-offs behind cement distribution.
For the nine months ended Sept. 30, 2026, BUA Cement Plc's gross profit margin rose seven percentage points to 57.1%. Its EBITDA margin increased 6.3 points to 52.7%, with the company crediting part of the improvement to liquefied natural gas (LNG) truck savings and lower operations and maintenance charges. Yusuf Binji, BUA's managing director and CEO, said the investment would support market reach and operating efficiency while drawing on Nigeria's gas resources. EconoTimes previously covered BUA's nine-month profit growth.
HBM Nigeria Plc commissioned a compressed natural gas (CNG) station at its Mfamosing plant on Aug. 31, 2026. The company says the first phase can fuel as many as 150 trucks per day and handle 144,000 standard cubic meters of CNG daily. HBM's group managing director and CEO, Lolu Alade-Akinyemi, identified energy and logistics as major costs for the company and its value chain. HBM reported nine-month sales of ₦928.248 billion, up 19% from ₦780.486 billion a year earlier, and linked the increase to higher volumes, steady operations and more efficient distribution.
Dangote Cement Plc said it commissioned 500 CNG trucks in Tanzania and a mobile refueling unit at Okpella, Nigeria. Its Group haulage expenses rose to ₦489.291 billion from ₦396.082 billion in the year-earlier period. The company said selling, distribution and administrative expenses climbed 20.2% to ₦845 billion, driven by higher haulage costs. Dangote recorded ₦566.722 billion in capital expenditure for the nine months, with most going to new plants, distribution trucks and energy-efficiency work.
BUA cited heavy rainfall and poor road conditions as challenges during the period. It said it would pursue distributor partnerships and continue efforts to reduce its cost to serve in the fourth quarter.
