FG Asks Manufacturers To Reduce Cement Prices Nationwide
- Manufacturers have been asked by the federal government to lower the price of cement to a nationwide level
- Minister of Works, David Umahi, stated that there would be a meeting with cement manufacturers on July 1, 2026
- FG said that the current high cost had led contractors and some organisations to push for the review of contracts
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Federal Government has urged cement manufacturers in the country to cut down the prices of cement.
The government warned that the prevailing price of the commodity was impacting infrastructure projects and escalating demands for contract variations.
Source: Getty Images
Cement price in Nigeria drops
David Umahi, Minister of Works, made this call on Sunday, June 21, at the unveiling ceremony of the new corporate brand of Lafarge Africa, which was re-branded as HBM following its acquisition by the China-based HUAXIN Group.
Umahi added that discussions to discuss strategies that would help mitigate consistent hikes in cement prices would be initiated by the FG with cement manufacturers starting from July 1, 2026.
Speaking in a statement issued by his Senior Special Assistant on Media, Francis Nwaze, on Monday, the minister advised manufacturers to take the initiative of reducing the production costs rather than requesting adjustments in contracts to cover the increments.
Umahi said:
"I want to insist that Lafarge, now HBM and other manufacturers of cement should reduce their prices. We shall be engaging on this from July 1, 2026."
According to him, pressure has mounted on his ministry to alter existing contracts based on the increasing costs of cement.
He stated:
"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 is the manufacturers of cement that should review their costs."
The minister believed that bringing down the prices of cement would, consequently, help to reduce the cost of infrastructure delivery and make house construction affordable for Nigerians.
He urged HBM and other cement producers to increase production capacities so as to meet the rising demand as a consequence of the federal government's infrastructure drive under President Bola Tinubu.
Source: Twitter
Why must cement price in Nigeria drop?
Umahi also said that investments by the administration in the nation's roads, bridges and transport infrastructure have created tremendous opportunities for both manufacturers and investors in the construction sector.
He said"
“I commend you very highly and I say welcome onboard and we are going to work together. The market is smaller than what the president is doing. So, enlarge your coast."
Umahi also used the occasion to showcase what he described as the achievements of the Tinubu administration under the Renewed Hope Agenda, particularly in the area of infrastructure development, Punch reports.
He cited the Lagos-Calabar Coastal Highway as one of the flagship projects demonstrating the government’s commitment to economic transformation and national connectivity.
Price for a bag of cement in Nigeria rises
Earlier, Legit.ng reported that the cost of a 50kg bag of cement in Nigeria has surged to between N10,500 and N15,000 from an average price of N5,000 and N8,500 previously, pushing homeownership further out of reach for millions.
The increase in cement prices has been driven by strong demand, persistent inflationary pressures, high fuel costs, and rising transportation expenses.
Aliyu Oroji, immediate past president of the Real Estate Developers Association of Nigeria (REDAN), said rising building costs are slowing construction and pushing property prices beyond the reach of average citizens.
Source: Legit.ng
