High Price Of Cement Choking Contractors, FG Tells Manufacturers

The Minister of Works, Senator David Umahi, has called on cement manufacturers across the country to immediately reduce the price of cement.

He insisted that the current cost of the product is placing pressure on ongoing infrastructure projects and increasing demands for contract variations.

Formerly N5,000 per bag in December 2023, the cost has escalated to N13,000 in different parts of the country.

A statement issued on Monday by the Senior Special Assistant to Umahi on Media, Francis Nwaze, quoted the minister speaking during the official unveiling of the new corporate identity of Lafarge, now rebranded as HBM, held at the Lagos Continental Hotel, Lagos.

Delivering his keynote address, the Minister emphasised that the Federal Government would engage cement manufacturers from July 1 to address the issue of cement prices.

“I want to insist that Lafarge, now HBM, and other manufacturers of cement should reduce their prices,” Umahi declared.

He continued: “We shall be engaging on this from the first of July. 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 costs.”

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 on its transition and renewed commitment to the Nigerian market, Umahi assured the management of government support and partnership.

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

He pointed to the Lagos-Calabar Coastal Highway as one of the pieces of evidence of the administration’s bold vision and commitment to national transformation.

According to him, the quality and scale of the project have continued to attract global attention and admiration.

“When the Dutche 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,” he said.

Umahi expressed profound appreciation to President Tinubu for providing the leadership and political will to drive the country’s infrastructure renaissance.

He assured Nigerians that the administration remains firmly on course to restore national prosperity.

“I want to use this opportunity to thank President Bola Ahmed Tinubu, and I commit that Mr President is committed to taking 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,” he said.