FG demands cement price cuts from manufacturers

The Federal Government has intensified pressure on cement manufacturers to reduce the cost of cement, warning that the current pricing regime is placing a heavy burden on ongoing infrastructure projects and triggering growing demands from contractors for contract variations.

Minister of Works, Senator David Umahi, stated this on Sunday while delivering a keynote address at the unveiling of the new corporate identity of Lafarge Africa, which has been rebranded as HBM following its acquisition by the Chinese-based HUAXIN Group.

This was disclosed in a statement issued by the minister’s Senior Special Assistant on Media, Francis Nwaze, on Monday. Speaking before industry leaders, investors and stakeholders in Lagos, Umahi said the government would begin formal engagements with cement manufacturers from July 1 to address what he described as the persistent challenge of high cement prices.

The minister stressed that manufacturers must take responsibility for reducing costs rather than expecting the government to continually adjust project contracts to reflect rising material prices.

The statement read, “The Minister of Works, David Umahi, CON, has called on cement manufacturers across the country to immediately reduce the price of cement, insisting that the current cost of the product is placing pressure on ongoing infrastructure projects and increasing demands for contract variations.

“I want to insist that Lafarge, now HBM, and other manufacturers of cement should reduce their prices. We shall be engaging on this from July 1, 2026. Manufacturers of cement must reduce their prices because the contractors are choking me to review their contracts. But nobody is reviewing anybody’s contract. It’s the manufacturers of cement that should review their cost.”

According to him, reducing cement prices would not only support the delivery of critical infrastructure projects but also benefit ordinary Nigerians who rely on the product for housing and other construction activities.

The minister noted that the ongoing infrastructure expansion under President Bola Tinubu’s administration has created opportunities for manufacturers, contractors and investors across the construction value chain.

He urged HBM and other industry players to increase production capacity in anticipation of growing demand generated by the government’s road, bridge and transport projects.

The statement added, “The Minister noted that President Bola Ahmed Tinubu’s administration is investing heavily in critical infrastructure across the country, creating unprecedented opportunities for manufacturers and investors. He urged HBM and other industry players to expand their capacity to meet the growing demands of the nation’s infrastructure revolution.”

Commending the company’s transition and renewed commitment to the Nigerian market, Umahi assured the management of the government’s willingness to work closely with investors to deepen industrial growth and infrastructure development.

“I commend you very highly, and I say welcome onboard and we are going to work together. The market is smaller than what the president is doing. So, enlarge your coast,” he said.

Umahi also used the occasion to highlight the achievements of the Tinubu administration under the Renewed Hope Agenda, particularly in the area of infrastructure development.

He cited the Lagos-Calabar Coastal Highway as one of the flagship projects demonstrating the government’s commitment to economic transformation and national connectivity.

According to him, the project has continued to attract international recognition due to its scale and engineering quality. “When Deutsche Bank came to evaluate our project, they said it was undervalued and that the project is of topmost quality. Today, our neighbouring nations are coming to steal the technology of the coastal highway.”

The minister expressed confidence that the administration’s infrastructure agenda would help stimulate economic growth, create jobs and improve national competitiveness. He also praised President Tinubu for providing what he described as bold leadership and the political will needed to drive major reforms and infrastructure investments across the country.

“I want to use this opportunity to thank President Bola Tinubu, and I commit that Mr President is committed to retake this country. The President knows what he is doing. The vision and mission are achievable, and we are on course, and this country will be taken back for the good of Nigerians,” Umahi said.

The latest intervention by the minister comes amid concerns from contractors and industry stakeholders over the rising cost of construction materials, particularly cement, which remains a critical input in road construction, housing development and other infrastructure projects.

Contractors have repeatedly warned that persistent increases in cement prices could raise project costs, slow housing delivery and put additional pressure on both public and private sector construction activities.

The Federal Government’s planned engagement with manufacturers is expected to focus on ways to moderate prices while sustaining investment and production in the sector.