The Nigerian Federal Government has called on cement manufacturers to reduce the price of cement to N7,000 per bag, citing the recent improvements in the country’s economic conditions. This appeal was made by the Minister of Works, Sen. Engr. Nweze David Umahi, in a meeting held at the Ministry’s headquarters in Abuja on February 26, 2025.
Umahi highlighted that the naira had stabilised at around N1,400 per dollar, and fuel prices had seen a reduction, factors he believes should contribute to a reduction in the price of cement. The Minister expressed dissatisfaction with the current price of N9,500 per bag, a figure that has remained high despite improvements in the country’s economic indicators.
The call for cement price reduction comes at a time when Nigeria’s economy has shown signs of recovery. Over the past few months, the naira has strengthened, stabilising at N1,400 to the dollar, a marked improvement from the N2,000 per dollar rate witnessed earlier. Additionally, fuel prices have dropped, providing further relief to the economy and businesses that depend on petroleum products, including the construction sector.
However, the price of cement, a critical material in the construction and infrastructure sectors, has not mirrored these improvements. The current price of cement, which stands at N9,500 per bag, has raised concerns in the construction industry, especially as it continues to put a strain on ongoing projects.
Umahi noted that when the dollar exchange rate was nearly N2,000, cement manufacturers increased their prices from N7,500 per bag. He questioned why the prices had not come down, even though the naira has stabilised and the government has worked to improve economic conditions.
“Today, a dollar is about N1,400. And let me use the opportunity to express dissatisfaction with the cost of cement. We are using this medium to tell the cement manufacturers that at the time, the dollar was almost N2,000, they increased cement from N7,500. Why should today, when the President has brought the dollar to stability at about N1,400, and it’s still going down, cement be selling for N9,500?” Umahi said during the meeting.
Affordable cement is crucial for the development of key infrastructure projects, including roads, bridges, and buildings. Umahi pointed out that the high cost of cement is hindering the construction of important infrastructure in the country. The Works Minister specifically mentioned the need for Continuously Reinforced Concrete Pavements (CRCP), a type of road construction that requires large quantities of cement.
He warned that if the prices of cement were not reduced, some contractors might revert to using asphalt for road construction, which could negatively impact the quality and durability of the infrastructure projects. Asphalt, while cheaper, does not offer the same level of durability as concrete pavements, which are necessary for long-lasting infrastructure.
Umahi expressed his frustration with the manufacturers, noting that the government has made significant efforts to stabilise the economy, but the benefits are not being reflected in the price of cement.
“We are requesting cement manufacturers to bring down the cost of cement to N7,000,” he stated. “We are requesting this price reduction to enable us to complete key infrastructure projects, such as CRCPs, and to provide affordable housing for Nigerians.”
The construction sector in Nigeria has been under considerable strain due to the high cost of building materials, particularly cement. The soaring cost of cement has forced many contractors and developers to reconsider their projects or delay their completion dates.
Additionally, the high cost of cement is affecting not only large infrastructure projects but also smaller-scale construction activities. Small-scale builders and contractors are finding it increasingly difficult to complete projects within budget due to the price hikes.
The call for cement price reduction is seen as timely, given the efforts by the government to stabilise the economy and ease the burden on businesses. The Ministry of Works has made it clear that if the manufacturers do not act on this call, the matter will be escalated to President Bola Tinubu.
Umahi expressed his determination to address the issue swiftly, stating that he would not hesitate to bring the matter to the attention of President Tinubu if the manufacturers fail to reduce the price within a week. “If prices are not reduced within a week, I will escalate the matter to President Bola Tinubu,” he warned.
