FG Fixes Cement Price, Gives Dangote, BUA And Other Manufacturers Deadline to Comply
- The Minister of Works, Dave Umahi, has asked cement manufacturers to crash the product’s price to N7,000 per bag
- He cited the new exchange rate and the reduction in petrol price as reducing production costs for manufacturers
- Umahi gave the manufacturers seven days to lower cement prices or they would be reported to President Bola Tinubu
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Minister of Works, Dave Umahi, has asked cement manufacturers to lower the cost of the product to N7,000 per 50kg bag or be reported to President Bola Tinubu.
The minister explained his request, stressing that the exchange rate had stabilised and petrol costs were also crashing, with plans to fix major roads in the country.
Source: Getty Images
Umahi gives reason for new cement price
According to the minister, the exchange rate is now N1,400 to a dollar, urging cement manufacturers to lower the product’s price.
The Sun reports that Umahi said contractors have complained that they wanted to revert to asphalt in road construction due to the high cement costs.
He said when the exchange was N2,000 to a dollar, cement manufacturers raised the price to N7,500, asking why the product would still be selling at N9,500 per 50kg bag.
Cement manufacturers defend prices
In 2024, following widespread protests by Nigerians over the rising cost of cement, the federal government convened a meeting with major cement manufacturers to address the issue.
The meeting, chaired by Umahi, aimed to understand the reasons behind the price surge and explore ways to make cement more affordable for Nigerians.
In their defense, manufacturers attributed the continuous price increase to demand outpacing supply in the sector. They also cited several other factors contributing to the hike, including soaring operational expenses, high gas costs, import duties, poor road infrastructure, and the persistent depreciation of the naira against foreign currencies.
Acknowledging these challenges, the federal government pledged to take necessary actions, while cement manufacturers agreed to establish a price monitoring mechanism. This system would ensure compliance and penalize distributors or retailers engaging in price inflation.
Ultimately, an agreement was reached to lower cement prices from the previous range of N9,000–N15,000 per 50kg bag to a new nationwide range of N7,000–N8,000, depending on location.
Since a significant reduction in cement prices has yet to materialize, Umahi has threatened to report the manufacturers to the president if the price adjustments are not implemented within seven days.
New cement firms enter Nigeria
A recent report by Legit.ng showed that Huaxin Cement Company, the Chinese firm and prospective buyer of Holcim’s 83% stake in Lafarge Africa, reportedly valued 100% of the company’s shareholding at $1.6 billion.
The group is set to cough up $838.8 million to acquire Holcim’s stake in Lafarge Africa. It also estimated the enterprise value of Lafarge Africa to be between $1.06 billion and $1.59 billion.
The valuation was disclosed in the firm’s filing on the Hong Kong Exchange.
According to reports, the valuation assumes cement prices in Nigeria to range from between $100 and $150 per tonne, based on Lafarge’s annual production capacity of 10.6 million tonnes.
Lafarge Africa stated that the acquisition aligns with Huaxin’s overseas expansion plan, focusing on leveraging its expertise in industrial technology and production chain integration to drive growth.
Chinese firm to introduce new technology
The plan also allows the company to counter the effects of China’s domestic market shutdown.
The Chinese firm’s entry into Nigeria’s cement industry will mark a significant shift.
Source: Getty Images
The sector has been largely dominated by Indian cement firms before the arrival of Dangote Cement, Africa’s largest manufacturer.
New cement firm to begin operations in Kebbi
Legit.ng earlier reported that the Kebbi State government has inked a deal with MSM Cement Limited to establish a factory with a three million tonnes per annum capacity.
The News Agency of Nigeria said the agreement was sealed on Friday, March 8, 2025, by the Kebbi state governor, Nasir Idris, and MSM Cement chairman, Mu’azzam Mairawani.
The governor reiterated his government’s commitment to creating a conducive business environment for the cement plant to operate, with the factory part of these efforts.
Article updated with additional information by head of business desk Victor Enengedi
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Proofreading by Nkem Ikeke, copy editor at Legit.ng.
Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Nkem Ikeke (Copy editor) Nkem Ikeke is currently a copy editor who also writes for the politics and current affairs desk on weekends. She holds a Bachelor of Arts in Mass Communication degree from the University of Nigeria, Nsukka (2010), and has over 10 years of work experience in the media industry (Reporter, News Agency of Nigeria). Email: n.ikeke@corp.legit.ng
