FG Sets Cement Price At N7,000 Amidst Drop Of Fuel Pump Price

The Federal Government of Nigeria has directed cement manufacturers to reduce the price of cement to N7,000 per 50kg bag within seven days, warning of consequences for non-compliance.

This directive was issued by the Minister of Works, Dave Umahi, on Thursday, March 13, 2025, amid growing concerns over rising building costs and economic pressures.

Umahi stated that the stabilisation of the exchange rate and falling petrol prices justified the need for a reduction in cement costs.

“The exchange rate has stabilised at N1,400 to a dollar, and petrol costs are also dropping. There’s no reason for cement to remain at its current price,” he said.

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He expressed concern that high cement prices were impacting government plans to fix major roads across the country, as contractors were considering reverting to asphalt for construction projects.

“Contractors are complaining about the high cost of cement, and they’re considering switching back to asphalt for road construction. We cannot allow this to continue,” the minister added.

Umahi noted that when the exchange rate was N2,000 to a dollar, cement prices rose to N7,500 per 50kg bag, questioning why the product was now selling at N9,500 despite the Naira’s recent gains.

He warned that failure by manufacturers to adjust prices within the stipulated timeframe would result in a formal report being made to President Bola Tinubu.

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“If they fail to comply within seven days, I will report them directly to the President,” Umahi stated.

Meanwhile, new players are entering Nigeria’s cement market. Huaxin Cement Company, a Chinese firm, is in the process of acquiring an 83% stake in Lafarge Africa from Holcim for $838.8 million.

The acquisition values Lafarge Africa’s total shareholding at $1.6 billion and its enterprise value between $1.06 billion and $1.59 billion.

According to filings on the Hong Kong Exchange, the deal assumes cement prices in Nigeria to range between $100 and $150 per tonne based on Lafarge’s annual production capacity of 10.6 million tonnes.

Lafarge Africa described the acquisition as part of Huaxin’s overseas expansion strategy, aimed at leveraging industrial technology and production chain integration to drive growth.

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This development is expected to increase competition in Nigeria’s cement market, potentially influencing future pricing and availability.

As the deadline approaches, all eyes are on leading manufacturers like Dangote Cement and BUA Cement to see how they will respond to the government’s directive.

The Federal Government has reiterated its commitment to ensuring fair pricing and accessibility of building materials to support national development.

Efforts to reach representatives of Dangote and BUA Cement for comments on the directive were unsuccessful at the time of this report.