Lafarge Africa’s Remarkable Turnaround Under New Leadership
When Lol Alade-Akinyemi assumed leadership of Lafarge Africa’s management team in July 2023, the company had already weathered a challenging decade. Once burdened by crippling debts that threatened its very existence, Lafarge saw investors retreat, driving its stock price down to a mere 12 Naira in 2018. However, just three years later, the cement manufacturer achieved unprecedented success, with annual sales surpassing 1 trillion Naira for the first time, profits nearly tripling, and its share price soaring to approximately 226 Naira.
For Alade-Akinyemi, a finance executive with more than 20 years of wide-ranging international experience, this record-breaking year is the result of a comprehensive restructuring initiative that began with rejuvenating the balance sheet and has now progressed into aggressive market expansion.
Emerging from Crisis
Lafarge Africa’s tribulations trace back to an ambitious restructuring in 2014, which merged various African assets into a single Nigerian entity. This strategy, implemented by parent company Lafarge, integrated South African operations with the aim of competing with Dangote Cement, Africa’s leading cement producer. However, the South African division ultimately became a financial drain; alongside the depreciation of the Naira, losses mounted and foreign currency liabilities escalated. By 2018, Lafarge Africa’s debts had reached approximately 266 billion Naira, culminating in a loss of 8.1 billion Naira and a sharp decline in investor confidence.
A transformative moment arrived in 2019 when the company divested its South African operations for $317 million. This strategic divestiture allowed Lafarge Africa to eliminate foreign exchange debt and significantly reduce its financing costs, resulting in a profit rebound to 15.5 billion Naira for that year. Although this move stabilized the company, it left management with the pressing task of rekindling growth and rebuilding shareholder trust.
Leadership Transition
Alade-Akinyemi’s journey with Lafarge began in 2014, where he quickly advanced from Finance Director to Executive Officer in 2020, ultimately becoming CEO in 2023, following the tenure of Khalid El Dokani. His background includes key roles at PZ Cussons Nigeria Plc and a 16-year tenure at The Coca-Cola Company, where he gained insight across finance, supply chain, business development, and sales in markets such as the UK, Belgium, Ghana, and Nigeria. His career commenced as a trainee at ExxonMobil.
Industry observers highlight that Alade-Akinyemi’s extensive experience has shaped a leadership approach focused on operational discipline and profit responsibility—qualities that are now pivotal for the company’s future performance.
Record Financial Outcomes
The numbers reflect an impressive recovery. After several years of steady improvements, Lafarge Africa’s revenues surged dramatically, increasing from 696 billion Naira in 2024 to 1.66 trillion Naira—a milestone in the company’s history. Profit after tax experienced an even more significant leap, rising almost threefold from 100.19 billion Naira to 273 billion Naira.
This impressive financial performance translated into substantial dividends for shareholders. The company announced an interim dividend of 4 Naira per share, supplemented by a final dividend of 6 Naira—a total dividend of 10 Naira per share, amounting to approximately 97 billion Naira, a stark increase from the previous year’s 19.32 billion Naira.
Strategic Ownership Transition
Another noteworthy development occurred in December 2024, when Holcim agreed to sell an 83.81 percent stake in Lafarge Africa to Huaxin Cement for around $1 billion. This transition introduces a strategic investor with significant expertise in cement manufacturing and a robust track record of expanding production in emerging markets.
The change in ownership has not only bolstered market confidence but has also heightened expectations for accelerated growth. Alade-Akinyemi’s management is keenly aware of the importance of this transition in shaping the company’s future trajectory.
Preparing for Future Expansion
Despite its record financial results, the focus of Alade-Akinyemi’s leadership team has already shifted towards future growth. In February 2026, Lafarge announced plans to enhance production capacity at its Sagamu plant in Ogun State and its Ashaka facility in Gombe State. This initiative aims to raise annual production capacity from 10.5 million tons to nearly 14 million tons.
The expansion involves scaling up production at the Sagamu plant from 1 million tons to 3.5 million tons, while the Ashaka plant’s annual output will double to about 2 million tons. Industry estimates indicate that this investment initiative could exceed 400 billion Naira, positioning Lafarge to compete more aggressively within Nigeria’s cement market, which is currently dominated by Dangote Cement and BUA Cement.
With the company’s share price increasing by an astonishing 1,683% since 2018, investors who purchased shares at 12 Naira for 1 million Naira now see a profit exceeding 18 million Naira, not accounting for dividends. This remarkable resurgence illustrates the revival of one of Nigeria’s oldest industrial enterprises and underscores the leadership that has guided Lafarge to its most successful year yet.
