Dangote Cement Plc and BUA Cement Plc spent a mixed N797.1 billion on energy in the primary 9 months of 2026.
The determine comes from their unaudited monetary statements for the interval ended September 30, 2026.
Dangote Cement reported group gasoline and energy prices of N580.5 billion, up 2.0% from N569.0 billion a 12 months earlier.
BUA Cement’s energy consumption rose 21.5% to N216.6 billion, from N178.2 billion. The mixed invoice is 6.7% larger than the N747.2 billion the 2 spent in the identical interval of 2025.
Energy cost, for a cement maker, covers two issues. The first is the gasoline burned to warmth kilns to over 1,400°C to make clinker: fuel, coal, low-pour gasoline oil and, more and more, waste-derived various fuels. The second is the electrical energy that drives crushers, mills and packing vegetation, which Nigeria’s huge cement producers generate largely in their very own energy vegetation moderately than purchase from the grid.
HBM Nigeria Plc, previously Lafarge Africa, reported manufacturing variable prices of N226.3 billion, up 4.2%. The firm doesn’t separate energy from different inputs: the determine bundles gasoline, energy, uncooked supplies and consumables. It additionally books some electrical energy prices underneath manufacturing mounted prices, alongside personnel bills.
Money the grid is leaving on the desk
The measurement of the cement makers’ energy invoice reveals how a lot spending sits exterior Nigeria’s electrical energy market due to the grid’s unreliability.
Not all of it might go to the grid. Kiln gasoline is a direct enter the grid can not exchange, however the electrical energy element, generated in non-public vegetation on the corporations’ personal cost, is demand that dependable grid provide might seize.
- Nigeria’s three largest cement makers generate their very own energy. Dangote Cement has at the least 345MW of captive capability at its 4 Nigerian vegetation: Obajana in Kogi State (135MW), Ibese in Ogun State (about 111MW), Okpella in Edo State (60MW) and Gboko in Benue State (about 38.5MW). The vegetation can run on fuel, coal or gasoline oil.
- BUA Cement has an estimated 240MW to 280MW, largely gas-fired. Its Sokoto plant runs 120MW of Wärtsilä engines on liquefied pure fuel, and the Nigerian Electricity Regulatory Commission granted it an extra 12MW allow for the location in the primary half of 2026.
- Its Obu plant in Edo State has a 70MW fuel plant serving its third line, alongside older generators. BUA doesn’t publish a consolidated determine.
Together, the 2 corporations have roughly 585MW to 625MW of nameplate capability in Nigeria. HBM Nigeria provides at the least 200MW at its Ewekoro and Mfamosing vegetation, taking the large three previous 800MW.
- Dangote Cement additionally generates energy exterior Nigeria. Verified vegetation embody a 45MW gas-fired station at its Mtwara plant in Tanzania and a 30MW coal-fired unit at Ndola in Zambia. Capacity at its operations in Senegal, Ethiopia, Congo and South Africa is just not publicly disclosed.
For context, common out there capability on the nationwide grid was 4,457.96MW in the primary quarter of 2026, in keeping with NERC. That places Dangote Cement and BUA’s Nigerian captive capability at about 13% to 14% of what the grid had out there.
What DisCos earned
Nigeria’s 11 electrical energy distribution corporations (DisCos) billed clients about N2.01 trillion between January and August 2026 and picked up about N1.63 trillion, a group fee of roughly 81%. The totals are drawn from NERC’s quarterly experiences for Q1 and Q2 and its month-to-month factsheets for July and August.
On a like-for-like foundation, Dangote Cement and BUA’s energy spend in the primary half of 2026 (N519.8 billion) was equal to 43% of all the pieces the DisCos collected in the identical interval (N1.20 trillion).
- Dangote Cement’s guardian firm spent N208.2 billion on gasoline and energy in H1 2026, near the N215.1 billion collected by Abuja DisCo, which serves its Obajana plant in Kogi State.
- BUA’s H1 energy invoice of N135.4 billion was about 4.4 occasions the N30.9 billion collected by Kaduna Electric, the DisCo for its Sokoto plant.
It additionally exceeded the N99.9 billion collected by Benin DisCo, which covers each BUA’s Obu plant and Dangote’s Okpella plant.
A wider retreat from the grid
The hole widens as soon as different producers are counted. Companies and establishments holding NERC captive era licences had about 6,500MW of capability, in keeping with NERC information reported in January 2025, greater than the grid’s typical output.
Estimates of all privately owned generation, together with diesel and petrol mills, run from 15,000MW to twenty,000MW. The Manufacturers Association of Nigeria says its members spent N1.34 trillion on various energy in 2025, up 21% from N1.11 trillion in 2024.
The exits proceed. NERC granted captive permits totalling 54.94MW between January and June 2026, with BUA Cement’s 12MW the most important single allow.
Grid failures and an election situation
The nationwide grid has failed at the least thrice this 12 months. It collapsed on January 23, with era falling to zero, and once more on January 27.
On October 19, a number of journeys on the 330kV community reduce provide from 3,647MW to 675MW inside an hour, an 81.5% drop, as 9 vegetation went offline.
Power has turn into a marketing campaign situation forward of the 2027 election. Former Vice President Atiku Abubakar, by means of the ADC Presidential Campaign Council, says President Bola Tinubu has failed his promise of regular electrical energy. He cites a 2022 marketing campaign comment: “If I don’t give you constant electricity for four years, when I come back for a second term, don’t vote for me.”
What you must know
Dangote Cement and BUA Cement earned mixed income of N4.86 trillion in the 9 months. Dangote’s income rose 19.6% to N3.77 trillion and BUA’s rose 26.5% to N1.09 trillion.
- Energy consumed 16.4% of mixed income, down from 18.6% a 12 months earlier, as cement costs rose quicker than gasoline prices.
- Dangote Cement’s energy fell to fifteen.4% of income from 18.0%. Management credit a greater energy combine, various fuels and gas-powered (CNG) vans for holding gasoline and energy development to 2.0% whereas volumes rose 9.4%. The group determine contains its operations in 9 different African nations. The Nigerian guardian firm’s gasoline and energy invoice rose 15.1% to N313.9 billion.
BUA Cement’s energy fell to 19.9% of income from 20.8% over 9 months, however rose sharply in the third quarter. Q3 energy prices rose 59.8% to N81.3 billion, lifting the energy share of income to 22.7% from 18.3%. Over the identical quarter, BUA’s supplies cost fell 68%, which can level to a reclassification between cost traces. The firm has not defined the motion.
