The Federal Government has increased pressure on cement producers to lower cement prices, cautioning that the present pricing structure is burdening ongoing infrastructure projects and increasing contractor demands for contract modifications.
This was said on Sunday by Senator David Umahi, Minister of Works, during his keynote speech at the launch of Lafarge Africa’s new corporate identity. The company was acquired by the Chinese company HUAXIN Group, and it is now known as HBM.
Francis Nwaze, the minister’s Senior Special Assistant, Media, revealed this in a statement on Monday.
In front of stakeholders, investors, and industry executives at the Lagos Continental Hotel in Lagos, Umahi announced that the government would start formal talks with cement producers on July 1 in order to address what he called the ongoing problem of high cement pricing.
The minister emphasised that instead of expecting the government to continuously modify project contracts to account for growing material prices, producers must take charge of cutting costs.
“The Minister of Works, Senator Engr. David Umahi, CON, has called on cement manufacturers across the country to immediately lower 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,” the statement stated.
“I want to demand that Lafarge, HBM, and other cement producers lower their pricing. We will start working on this on July 1, 2026. The contractors are pressuring me to evaluate their contracts, therefore the cement manufacturer needs to lower their prices. However, no one is looking over anyone’s contract. The pricing should be reviewed by the cement manufacturers.
He claims that lowering cement prices would help Nigerians who depend on the material for housing and other building projects in addition to facilitating the completion of important infrastructure projects.
The minister pointed out that throughout the building value chain, manufacturers, contractors, and investors now have a plethora of chances thanks to President Bola Tinubu’s administration’s continuous infrastructure expansion.
In anticipation of the rising demand brought on by the government’s planned road, bridge, and transportation projects, he urged HBM and other industry participants to boost production capacity.
“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 continued. In order to fulfil the increasing demands of the country’s infrastructure revolution, he asked HBM and other industry participants to increase their capacity.
Umahi praised the company’s shift and reaffirmed its dedication to the Nigerian market, assuring the management of the government’s readiness to collaborate closely with investors to further infrastructure development and industrial growth.
“I give you a lot of praise, welcome on board, and we will collaborate.” Compared to what the president is doing, the market is tiny. “So, expand your coast,” he said.
Umahi also took advantage of the event to highlight what he called the Tinubu administration’s accomplishments under the Renewed Hope Agenda, especially with regard to infrastructure development.
He mentioned the Lagos-Calabar Coastal Highway as one of the main initiatives showcasing the government’s dedication to national connectivity and economic change.
He claims that because of the project’s size and high calibre of engineering, it has continued to get acclaim on a global basis.
“When Deutsche Bank came to assess our idea, they declared it was of the highest calibre and was undervalued. The technology of the coastal highway is being stolen by our neighbouring countries.
The minister expressed optimism that the administration’s infrastructure plan will boost employment, boost economic expansion, and increase the country’s competitiveness.
Additionally, he commended President Tinubu for offering what he called “bold leadership” and the political will required to propel significant changes and infrastructural investments throughout the nation.
“I would like to take this occasion to express my gratitude to President Bola Ahmed Tinubu, and I promise that he is dedicated to leading this nation. The President is an expert in his field. We are on track, the goal and purpose are attainable, and this nation will be reclaimed for the benefit of Nigerians,” Umahi declared.
The minister’s most recent involvement coincides with worries expressed by industry stakeholders and contractors on the growing price of building supplies, especially cement, which is still a vital component of house development, road construction and other infrastructure projects.
Contractors have frequently cautioned that ongoing increases in cement prices could result in higher project costs, a delay in the supply of houses, and more strain on building activities in both the public and private sectors.
Therefore, it is anticipated that the Federal Government’s planned interaction with manufacturers would concentrate on figuring out how to control prices while maintaining investment and output in the industry.