Federal Govt Calls For Cement Price Reduction To N7,000 Amid Improved Economic Conditions

In a statement released on the ministry’s website, Umahi highlighted the recent stabilization of the naira at approximately N1,400 per dollar and the reduction in petrol prices as key factors creating a conducive environment for lower cement costs. He expressed dissatisfaction with the current price of N9,500 per bag, noting that manufacturers had increased prices when the dollar was nearly N2,000 but failed to adjust them downward despite the naira’s recovery.

“Today, a dollar is about N1,400. And let me use this opportunity to express dissatisfaction with the cost of cement,” Umahi stated. “We are using this medium to tell 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 is still going down—why should cement be selling for N9,500? We are requesting cement manufacturers to bring down the cost of cement to N7,000.”

Umahi emphasized that affordable cement is critical for the construction of Continuously Reinforced Concrete Pavements and the completion of key infrastructure projects across the country. He revealed that some contractors are considering reverting to asphalt due to the high cost of cement, a move that could delay critical infrastructure development.

The Minister issued a stern warning, stating that if cement prices are not reduced within a week, he would escalate the matter to President Bola Tinubu for further action.

This is not the first time a minister under the current administration has criticized the high cost of cement. In February 2024, Musa Dangiwa, the Minister of Housing and Urban Development, raised concerns about cement manufacturers exploiting fluctuating foreign exchange rates to justify significant price hikes.

Dangiwa had noted an alarming increase in cement prices from N5,500 to over N10,000 per bag—a rise of more than 100% in recent months. He accused manufacturers of failing to control soaring prices and urged them to innovate and find solutions instead of passing costs onto Nigerians, particularly during minor macroeconomic challenges.

The Housing Minister also warned that the high cost of cement threatens the Ministry’s housing delivery efforts, a key priority for the administration. He highlighted the Ministry’s commitment to providing affordable and social housing for low- and middle-income earners, stressing that rising cement prices jeopardize these initiatives.