The Minister of Works, Sen. Dave Umahi, has raised concerns over the rising cost of cement in Nigeria, warning that it is putting significant pressure on the execution of major infrastructure projects across the country.
Umahi made the remarks on Sunday in Lagos during a keynote address at the unveiling of the new corporate identity of Lafarge Nigeria, now rebranded as HBM under the HUAXIN Group.
The minister said the high cost of cement is already forcing contractors to seek upward contract reviews, which could affect ongoing infrastructure delivery timelines.
He stressed that government would not approve contract variations linked to rising material costs, insisting instead that manufacturers should adjust their pricing structure.
Umahi announced that the Federal Government will begin formal discussions with cement producers from July 1 to address escalating prices in the construction sector.
“Manufacturers of cement must reduce their prices because contractors are pressuring me to review their contracts,” he said.
“However, nobody is reviewing any contract. It is the manufacturers who should adjust their costs.”
The Minister noted that Nigeria’s ongoing infrastructure drive under President Bola Tinubu’s Renewed Hope Agenda has significantly increased demand for cement and other building materials.
He urged manufacturers, including HBM (formerly Lafarge), to expand production capacity to meet rising national demand.
According to him, stronger output from the private sector will help stabilize prices and support government infrastructure ambitions.
Umahi highlighted several ongoing projects, including the Lagos-Calabar Coastal Highway, as evidence of the administration’s commitment to large-scale infrastructure transformation.
He said international observers have acknowledged the quality and scale of the projects being implemented.
“Neighbouring countries are coming to study the technology being deployed on the coastal highway project,” he said.
The minister assured investors and industry players of government support, noting that Nigeria remains a key market for construction and manufacturing growth.
He also commended HBM for its rebranding and reaffirmed the government’s willingness to work closely with the company and others in the sector.
Umahi reiterated that the administration remains committed to delivering national infrastructure projects aimed at boosting economic development and prosperity.
