The Minister of Works, Dave Umahi, has asked cement manufacturers to lower the cost of the product to N7,000 per 50kg bag or be reported to President Bola Tinubu.......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
The minister explained his request, stressing that the exchange rate had stabilised and petrol costs were also crashing, with plans to fix major roads in the country.
Umahi gives reason for new cement price
The Sun reports that Umahi said contractors have complained that they wanted to revert to asphalt in road construction due to the high cement costs.
He said when the exchange was N2,000 to a dollar, cement manufacturers raised the price to N7,500, asking why the product would still be selling at N9,500 per 50kg bag.
FG threatens cement manufacturers
He asked them to lower the price within seven days, or he would officially report them to the President.
The minister also commented on the construction of the Enugu-Onitsha dual carriageway, saying the project must be completed by May 10, 2025.
Umahi disclosed that MTN, the project’s funder, would be held liable if the construction fails.
The ultimatum comes amid plans by foreign cement firms to set up operations in Nigeria.
New cement firms enter Nigeria
A recent report by Legit.ng showed that Huaxin Cement Company, the Chinese firm and prospective buyer of Holcim’s 83% stake in Lafarge Africa, reportedly valued 100% of the company’s shareholding at $1.6 billion.
The group is set to cough up $838.8 million to acquire Holcim’s stake in Lafarge Africa. It also estimated the enterprise value of Lafarge Africa as between $1.06 billion and $1.59 billion.
The valuation was disclosed in the firm’s filing on the Hong Kong Exchange.
According to reports, the valuation assumes cement prices in Nigeria to range from between $100 and $150 per tonne, based on Lafarge’s annual production capacity of 10.6 million tonnes.
Lafarge Africa stated that the acquisition aligns with Huaxin’s overseas expansion plan, focusing on leveraging its expertise in industrial technology and production chain integration to drive growth.
Chinese firm to introduce new technology
The plan also allows the company to counter the effects of China’s domestic market shutdown.
The Chinese firm’s entry into Nigeria’s cement industry will mark a significant shift.
The sector has been largely dominated by Indian cement firms before the arrival of Dangote Cement, Africa’s largest manufacturer.
A new cement firm to begin operations in Kebbi
Legit.ng earlier reported that the Kebbi State government has inked a deal with MSM Cement Limited to establish a factory with a three million tonnes per annum capacity.
The News Agency of Nigeria said the agreement was sealed on Friday, March 8, 2025, by the Kebbi state governor, Nasir Idris, and MSM Cement chairman, Mu’azzam Mairawani.
The governor reiterated his government’s commitment to create a conducive business environment for the cement plant to operate, with the factory part of these efforts.
