FG Demands Cement Price Cuts from Manufacturers

Nigeria's Federal Government is intensifying its push for cement manufacturers to reduce prices, warning that current costs are straining infrastructure projects and fueling contractor demands for contract variations. Minister of Works, Senator David Umahi, stated that the government would initiate formal discussions with cement producers from July 1, 2026, to tackle the persistent issue of high cement prices.

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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.

Umahi emphasized that manufacturers must take responsibility for cost reduction rather than expecting the government to continually adjust project contracts to accommodate rising material prices. He specifically called on Lafarge, now rebranded as HBM following its acquisition by HUAXIN Group, and other cement producers to lower their prices. "Manufacturers of cement must reduce their prices because the contractors are choking me to review their contracts," Umahi stated, adding that manufacturers should review their own costs.

The minister argued that lower cement prices would not only facilitate the completion of critical infrastructure projects but also provide relief to ordinary Nigerians who depend on the product for housing and other construction needs. He noted that the current administration's significant investment in infrastructure has created substantial opportunities for manufacturers, contractors, and investors within the construction sector.

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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.

Umahi encouraged HBM and other industry players to expand their production capacity to meet the anticipated surge in demand driven by the government's extensive road, bridge, and transport projects. He assured investors of the government's commitment to collaborating closely with them to foster industrial growth and infrastructure development in the country.

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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.