Value and Wealth Creation: Stylized Nigeria’s Listed Cement Companies

Oyakhilome Ibhagui
University of Kent



In this paper, we investigate the value and wealth creation of Nigeria’s cement industry from 2010 – 2013 when fi rms in the industry accelerated capacity expansion. We fi nd that the industry has, on average, been a consistent value creator. Cumulatively, the industry has also created wealth for shareholders. Our results show that between 2010 and 2013, the industry created a cumulative average value of 23.01% or 39.92billion in absolute Naira terms. Th e industry has also increased wealth levels of equity portfolio investors, creating a cumulative average wealth of 58.13% between 2010 and 2013, in our estimation. Th is implies investors who allocated equal capital to shares in the industry at the start of 2010, and held these shares without periodic revisions, would have earned an average return of 58.13% on the total invested capital, neglecting transaction costs. Download the full article