FG Sets New Cement Price, Orders Dangote, BUA, Others to Adjust Immediately
NIGERIA – The Federal Government has directed cement manufacturers to reduce the price of a bag of cement to ₦7,000 with immediate effect. This directive was issued by David Umahi, the Minister of Works, during a meeting with MTN and RCC Company Nig. Ltd at the Ministry’s headquarters in Abuja on February 26, 2025.
According to a statement posted on the ministry’s website, Umahi emphasized the crucial role of cement in the construction industry, particularly for Continuously Reinforced Concrete Pavements. He pointed out that despite the stabilization of the naira at about ₦1,400 per dollar in the foreign exchange market and the drop in petrol prices, the cost of cement has remained high at ₦9,500 per bag.
Umahi expressed concerns that cement manufacturers previously justified price hikes when the dollar was nearing ₦2,000, but have failed to adjust prices now that the exchange rate has improved.
He stated:
“Our contractors have called and complained that they wanted to move back to asphalt. 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 that the President has brought dollar to stability to about N1,400, 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. If after one week they don’t do that, I have to complain officially to Mr. President.”
The Minister of Works also stressed that affordable cement is essential for completing critical infrastructure projects across the country.
In a separate update, Umahi inspected BUA Cement’s facility in Sokoto, where the company committed to adjusting cement prices. Speaking after the inspection, Umahi described the BUA facility as highly impressive.
BUA Cement’s Group Executive Director, Alhaji Kabir Rabiu, also assured the government of the company’s willingness to collaborate in making cement more affordable.
Rabiu said:
“We also gave our commitment that we don’t believe cement should sell for more than 7,000 naira anywhere in Nigeria.”
The directive comes as Nigeria’s major cement manufacturers—Dangote, BUA, and Lafarge—reported a combined revenue of over ₦3.61 trillion in 2024, a 69.4% increase from the previous year. Analysts believe that reducing cement prices will boost infrastructure development and lower construction costs for Nigerians.
By Damilola Adeleke| February 28, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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