Fed Govt begin talks with cement manufacturers over price hike July 1 — Umahi

FG begin talks with cement manufacturers over price hike July 1 — Umahi

The Federal Government says it will commence formal discussions with cement producers from July 1 in a bid to tackle the escalating cost of cement, which is straining infrastructure delivery across the country.

The Minister of Works, David Umahi, made the announcement on Monday during the unveiling of Lafarge’s new corporate identity in Lagos, where the company was rebranded as HBM, a member of the HUAXIN Group. The event was held at the Lagos Continental Hotel.

A statement issued in Abuja by the minister’s media aide, Francis Nwaze, said rising cement prices are increasing pressure on ongoing infrastructure projects and prompting contractors to demand contract adjustments.

Umahi warned that government would not approve such variations, insisting that manufacturers must take responsibility for pricing.

“I want to insist that Lafarge, now HBM, and other manufacturers of cement should reduce their prices. We shall be engaging on this from the first of July,” Umahi stated.

“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’s the manufacturers of cement that should review their costs,” he added.

The minister said the administration of President Bola Ahmed Tinubu is heavily investing in national infrastructure, creating expanded opportunities for investors and manufacturers, but also increasing demand for construction materials.

Bola Ahmed Tinubu has, according to Umahi, demonstrated strong political will through ongoing infrastructure development under the Renewed Hope Agenda.

He urged HBM and other cement producers to scale up production capacity to meet rising demand driven by nationwide projects.

While commending the company’s rebranding, Umahi assured industry players of government collaboration and support.

“I commend you very highly, and I say welcome on board, and we are going to work together. The market is smaller than the president’s efforts. So, enlarge your coast.”

Highlighting flagship projects such as the Lagos-Calabar Coastal Highway, the minister said the administration’s infrastructure drive is already attracting international attention.

He claimed global financial observers have acknowledged the quality of government projects.

“When the Dutch Bank came to evaluate our project, they said it was undervalued and that the project is of topmost quality. Today, our neighbouring nations are coming to steal the technology of the coastal highway,” Umahi stated.

He also praised President Tinubu’s leadership, expressing confidence in the administration’s direction and long-term economic goals.

“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,” he sai