Federal Government Pressures Cement Manufacturers to Cut Prices

The Federal Government has issued a stern directive to cement manufacturers to lower their prices, citing the negative impact of current costs on critical infrastructure projects across the country.

Minister of Works, Senator David Umahi, announced that the government will begin formal engagements with industry players on July 1, 2026, to address what he characterized as a persistent and burdensome pricing regime. Speaking at the unveiling of the new corporate identity for HBM (formerly Lafarge Africa) in Lagos, the minister emphasized that contractors are increasingly demanding contract variations due to the rising cost of materials.

“Manufacturers of cement must reduce their prices because the contractors are choking me to review their contracts,” Umahi stated. He made it clear that the government is not prepared to adjust project contracts, placing the responsibility on manufacturers to re-evaluate their production costs instead.

The minister argued that lower cement prices are essential to sustaining the momentum of the administration’s infrastructure revolution, which includes major projects such as the Lagos-Calabar Coastal Highway. He noted that these projects create significant opportunities for manufacturers and urged industry leaders to expand their production capacity to meet rising national demand.

Industry stakeholders have long voiced concerns that high construction material costs, particularly cement, threaten to slow down both public infrastructure developments and private housing delivery. The upcoming government-led discussions are expected to focus on identifying sustainable ways to moderate prices while maintaining sector growth and investment.

During the event, the minister also praised the administration’s commitment to national connectivity and economic reform, reaffirming the government’s readiness to collaborate with investors to deepen industrial growth.