Umahi pressures cement makers to slash prices amid project strain

Nigeria's Minister of Works, David Umahi, has intensified pressure on cement manufacturers to bring down prices, arguing that current costs are placing unsustainable strain on the nation's infrastructure projects. The minister made the appeal during a keynote address in Lagos State over the weekend, speaking to industry leaders and investors gathered at a continental hotel venue.

Umahi attributed the challenge to rising cement costs that have forced contractors to seek upward revisions of contract sums across multiple ongoing construction sites nationwide. He disclosed that the Federal Government will begin formal engagement with cement producers starting July 1 to address the escalating price situation.

The government has also urged manufacturers, specifically naming Lafarge Africa and HBM Cement, to expand production capacity to better meet national demand. The timing of this intervention reflects the Tinubu administration's substantial investment in critical infrastructure development across the country.

Umahi's statements come as Lafarge Africa has rebranded following its acquisition by Chinese-based Huaxin Group, which the government views as an opportunity to recalibrate industry dynamics. The minister stressed that expanded manufacturing capacity could help stabilize the market and ease pressures on project execution.

Sources indicate the government views cement price stabilization as essential to sustaining its infrastructure agenda without forcing continuous contract renegotiations. The July 1 engagement date marks the formal commencement of negotiations between government officials and manufacturers to establish a pathway toward reduced material costs.