This study focuses on the performance assessment of cement companies in Nigeria. To achieve this objective four cement companies that are quoted on the Nigerian Stock Exchange are selected for a detailed performance analysis. They are Ashaka Cement Plc, Benue Cement Company Plc, Cement Company of Northern Nigeria Plc and West African Portland Cement Company Plc. The problem of this study stems from the perceived trend of the Nigerian capital market. Despite its indispensable role in the nation’s existence the cement industry in Nigeria has not been able to attract much needed investment. It is therefore pertinent to find out whether the cement companies are performing to the extent of meeting the expectations of the various stakeholders in Nigeria. The assessment is carried out through the application of the known financial risk indices with a view to highlighting the efficiency of the various aspects of the operation of the selected cement companies. To this end, Osaze’s version of the Discriminant Analysis Models which is more relevant to the situation of the developing countries like Nigeria is used to assess the selected cement companies in this study. The historical method of research is adopted for the study and the main source of data is the cement company’s financial statements covering the ten-year period (1993 – 2002). It was found out that the cement industry in Nigeria has not shown a performance attractive enough to induce investors. The industry obviously needs the injection of fresh capital but, much more, the introduction of better management methods. Parts of the recommendations are that the government should assist the cement companies to be operating at full capacity instead of allowing the importation of foreign products.