The Federal Government has described the continued increase in cement prices across the country as unacceptable, warning that the trend is placing significant pressure on ongoing infrastructure and housing projects.
Minister of Works, David Umahi, disclosed that the government would begin discussions with cement manufacturers from July 1 in a bid to address the soaring cost of the commodity. He noted that the high price of cement has led contractors handling government projects to seek contract reviews and cost variations.
According to the minister, a 50kg bag of cement currently sells for about ₦12,500 or more in many parts of the country, a development he said is threatening the smooth execution of critical infrastructure projects and the Federal Government’s housing initiatives.
Speaking during the unveiling of HBM as the new corporate identity of Lafarge Nigeria, now a member of the Huaxin Group, Umahi urged cement manufacturers to reduce their prices rather than shifting rising costs to contractors and government projects.
He stressed that the administration of President Bola Ahmed Tinubu is investing heavily in roads, bridges and other infrastructure projects, creating significant opportunities for cement producers and other stakeholders in the construction sector.
Umahi also called on manufacturers to expand production capacity to meet the growing demand generated by ongoing federal projects nationwide. He assured industry players of the government’s willingness to partner with them to support investment and expansion.
The minister cited major projects such as the Lagos-Calabar Coastal Highway as evidence of the administration’s commitment to infrastructure development, noting that the project has attracted international recognition for its scale and quality.
The planned engagement with cement manufacturers is expected to focus on measures to reduce prices, ease pressure on construction costs and ensure the successful delivery of critical infrastructure projects across the country.
