The Federal Government has intensified calls for cement manufacturers to reduce prices, warning that the current cost of cement is placing significant strain on ongoing infrastructure projects across Nigeria.
Minister of Works, David Umahi, issued the warning on Sunday while speaking at the unveiling of the new corporate identity of Lafarge Africa, now rebranded as HBM following its acquisition by China’s HUAXIN Group.
According to a statement released by the minister’s office, Umahi said the government will begin formal engagements with cement manufacturers from July 1, 2026, to address what he described as unsustainable pricing levels in the sector.
He stressed that rising cement costs were triggering frequent demands from contractors for contract variations, a development he said was disrupting project planning and execution.
“I want to insist that Lafarge now HBM and other manufacturers of cement should reduce their prices,” Umahi said, adding that manufacturers must take responsibility for price adjustments rather than shifting the burden to government contracts.
He argued that lowering cement prices would ease pressure on infrastructure delivery while also benefiting ordinary Nigerians engaged in housing and construction activities.
The minister noted that the ongoing infrastructure drive under President Bola Tinubu’s administration has significantly expanded demand for construction materials, creating opportunities for manufacturers and investors.
He urged industry players, including HBM and other cement producers, to expand production capacity to meet rising demand driven by large-scale road, bridge, and transport projects.
Commending the company’s rebranding and investment in Nigeria, Umahi said the government remains committed to supporting industrial growth while ensuring affordability in key construction inputs.
“The market is smaller than what the president is doing. So, enlarge your coast,” he said.
Umahi also highlighted major infrastructure projects under the administration, including the Lagos–Calabar Coastal Highway, describing it as a flagship initiative that has attracted international attention for its scale and engineering quality.
He said the government’s infrastructure programme would stimulate economic growth, create jobs, and improve national competitiveness if properly supported by industry stakeholders.
The latest push comes amid growing concerns from contractors over the rising cost of cement, which they say is increasing project expenses and slowing down housing and infrastructure delivery.
Industry observers expect the planned engagement between government and manufacturers to focus on balancing affordability, production costs, and investment sustainability in the cement sector.
