The Federal Government has urged cement manufacturers in Nigeria to reduce the price of cement nationwide, warning that the current high cost is affecting infrastructure projects and leading to demands for contract variations. Minister of Works David Umahi made the call on Sunday, June 21, 2026, at the unveiling ceremony of Lafarge Africa's new corporate brand, HBM, following its acquisition by China-based HUAXIN Group.
Government warns of contract review pressures
Umahi stated that discussions with cement manufacturers to address consistent price hikes would begin on July 1, 2026. In a statement issued by his Senior Special Assistant on Media, Francis Nwaze, the minister urged manufacturers to reduce production costs rather than seeking contract adjustments to cover price increments. “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,” Umahi said.
He noted that pressure has mounted on his ministry to alter existing contracts due to rising cement costs. “Manufacturers of cement must reduce their prices because the contractors are choking me to review their contracts. But nobody is reviewing anybody's contract. It is the manufacturers of cement that should review their costs,” he added.
Benefits of lower cement prices
The minister believes that reducing cement prices will lower infrastructure delivery costs and make housing construction affordable for Nigerians. He urged HBM and other producers to increase production capacities to meet rising demand driven by the federal government's infrastructure push under President Bola Tinubu. “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,” Umahi said.
Umahi highlighted the achievements of the Tinubu administration under the Renewed Hope Agenda, particularly in infrastructure development, citing the Lagos-Calabar Coastal Highway as a flagship project demonstrating commitment to economic transformation and national connectivity, according to Punch reports.
Cement price surge in Nigeria
The cost of a 50kg bag of cement in Nigeria has risen to between N10,500 and N15,000 from an average of N5,000 to N8,500 previously, pushing homeownership further out of reach for millions. The increase is driven by strong demand, persistent inflationary pressures, high fuel costs, and rising transportation expenses. Aliyu Oroji, immediate past president of the Real Estate Developers Association of Nigeria (REDAN), said rising building costs are slowing construction and pushing property prices beyond the reach of average citizens.
