Nigeria Government to Cement Makers: Lower prices immediately or face pressure on contracts

The Federal Government has called on cement manufacturers in Nigeria to immediately reduce the price of cement, saying the current high cost is creating serious challenges for ongoing construction and infrastructure development across the country.

The Minister of Works, David Umahi, made the appeal while speaking at an event held in Lagos State on Sunday, where he addressed industry leaders, investors, and other key stakeholders in the construction and manufacturing sector.

According to him, the rising cost of cement has become a major concern for the government because it is directly affecting the cost of building roads, bridges, housing projects, and other public infrastructure.

He explained that many contractors are now putting pressure on the government to increase project budgets due to the sudden rise in material costs.

Umahi warned that the government will not approve unnecessary contract increases, stressing that the issue should be addressed by the cement producers themselves through price adjustments and improved efficiency.

He announced that the Federal Government will begin formal discussions with cement manufacturers from July 1 in order to find a lasting solution to the high cost of the product and ensure that infrastructure projects continue without delays.

“We shall be engaging on this from July 1. Manufacturers of cement must reduce their prices because contractors are putting pressure on me to review their contracts.

But nobody is reviewing any contract. It is the cement manufacturers that should review their costs,” he said.

The minister also encouraged cement producers to expand their production capacity, noting that demand has increased significantly due to the government’s ongoing nationwide infrastructure projects.

He explained that as more roads, housing schemes, and public facilities are being built, the need for cement has grown far beyond current supply levels.

Umahi added that strengthening production and reducing prices would benefit both the government and private sector, while also helping to stabilize the construction industry and support national development goals.