Minister of Works, David Umahi, has urged cement manufacturers to reduce the price of cement, warning that rising costs are increasing pressure on infrastructure projects and prompting contractors to seek contract reviews.
Umahi made the call on Sunday, June 22, while delivering a keynote address at the unveiling of the new corporate identity of Lafarge Africa, following its acquisition by the Chinese-based HUAXIN Group.
The minister’s remarks were contained in a statement issued on Monday, June 22, by his Senior Special Assistant on Media, Francis Nwaze.
Addressing industry stakeholders, investors and business leaders at the Lagos Continental Hotel, Umahi disclosed that the Federal Government would begin formal discussions with cement producers from July 1, 2026, on the issue of pricing.
He said manufacturers should shoulder the responsibility of reducing production costs instead of expecting the government to continually adjust construction contracts.
“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.
“Manufacturer of Cement must reduce their prices because the contractors are chocking me to review their contracts. But nobody is reviewing anybody’s contract. It’s the manufacturers of cement that should review their cost,” Umahi said.
According to the minister, lower cement prices would benefit both infrastructure delivery and ordinary Nigerians involved in housing and other construction activities.
Umahi said the scale of infrastructure investments under President Bola Tinubu’s administration had opened significant opportunities for businesses operating in the construction sector.
He encouraged HBM and other manufacturers to expand production capacity to meet the growing demand expected from ongoing and future government projects.
“The Minister noted that President Bola Ahmed Tinubu’s administration is investing heavily in critical infrastructure across the country, creating unprecedented opportunities for manufacturers and investors.
He urged HBM and other industry players to expand their capacity to meet the growing demands of the nation’s infrastructure revolution,” the statement said.
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The minister commended the company for its transition and reaffirmed the government’s readiness to collaborate with investors to drive industrial growth.
“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,” he said.
Umahi also highlighted what he described as major achievements of the Tinubu administration’s infrastructure agenda, pointing to the Lagos-Calabar Coastal Highway as one of the government’s flagship projects.
He said the project had attracted positive international assessments because of its quality and scale.
“When Deutsche Bank came to evaluate our project, they said it was undervalued and that the project is of topmost quality. Today, our neighboring nations are coming to steal the technology of the coastal highway,” Umahi said.
The minister expressed optimism that the administration’s infrastructure drive would stimulate economic activity, create employment opportunities and improve national competitiveness.
He also praised President Tinubu for providing the leadership needed to implement major reforms and infrastructure projects.
“I want to use this opportunity to thank President Bola Ahmed Tinubu, and I commit that Mr. President is committed to taking this country. The President knows what he is doing.
“The vision and mission are achievable, and we are on course, and this country will be taken back for the good of Nigerians,” Umahi said.
His comments come amid growing concerns within the construction industry over the rising cost of cement and other building materials.
Industry stakeholders have repeatedly warned that higher cement prices could increase the cost of public projects, slow housing development and place additional strain on both government and private sector construction activities.
The Federal Government’s planned talks with manufacturers are expected to explore measures aimed at stabilising prices while sustaining production and investment in the sector.