The Federal Government has urged cement manufacturers to lower prices to N7,000, citing improved economic conditions.
This call was made by the Minister of Works, Sen. Engr. Nweze David Umahi, during a meeting at the Ministry’s headquarters in Abuja on February 26, 2025, according to a statement on the ministry’s website.
Umahi noted that the naira has stabilized at about N1,400 per dollar, and petrol prices have dropped, creating a conducive environment for reduced cement costs.
He criticized the current price of N9,500, pointing out that manufacturers increased prices when the dollar was nearly N2,000 but have not adjusted them despite the naira’s recovery.
“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 to about N1400, and 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 stated.
The Works Minister stressed that affordable cement is vital for constructing Continuously Reinforced Concrete Pavements and completing key infrastructure projects.
He revealed that some contractors are considering a switch back to asphalt due to high cement costs. Umahi warned that if prices were not reduced within a week, he would escalate the matter to President Bola Tinubu.
What you should know
Umahi’s call for a reduction in cement prices is not the first time a minister under the current administration has criticized the high cost of the commodity.
In February 2024, Musa Dangiwa, the Minister of Housing and Urban Development, expressed concerns about cement manufacturers exploiting fluctuating foreign exchange rates to justify significant price hikes, worsening Nigeria’s economic challenges.
- Dangiwa criticized cement manufacturers for failing to control soaring prices, noting an alarming increase from N5,500 to over N10,000 in recent months—more than a 100% rise. He urged manufacturers to innovate and find solutions instead of passing costs onto Nigerians, particularly during minor macroeconomic challenges.
- He also warned that the high cost of cement threatens the Ministry’s housing delivery efforts, a key priority for the administration.
Dangiwa highlighted the Ministry’s commitment to providing affordable and social housing for low- and middle-income earners and vulnerable populations, stressing that rising cement prices jeopardize these initiatives.
