The Minister of Works, David Umahi, has expressed concern over the rising cost of cement, highlighting its adverse impact on ongoing infrastructure projects nationwide.
Umahi urged cement manufacturers to reduce the price from N9,500 to N7,000, stressing that such a reduction would significantly aid road rehabilitation efforts across Nigeria.
He noted that with the recent stabilization of the foreign exchange rate, adjusting cement prices would be essential in advancing infrastructure development.
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During a meeting on Wednesday in Abuja with the contractor and financier of the Enugu-Onitsha dual carriageway project under the Infrastructure Development and Refurbishment Investment (Tax Credit) Scheme, Umahi directed the contractor to complete the road by May 10, 2026.
Appealing to cement manufacturers, he emphasized that cement is a crucial material in construction, particularly for the Continuously Reinforced Concrete Pavement method. He argued that since the dollar exchange rate had dropped significantly, cement prices should follow suit.
A statement from the minister’s spokesperson, Uchenna Orji, quoted Umahi as saying:
*”The price of petrol is decreasing, and Mr. President is making significant efforts to improve road infrastructure. His policies are working, and today, the exchange rate is around N1,400 per dollar. I want to express my dissatisfaction with the cost of cement.
“Our contractors have expressed concerns about wanting to switch back to asphalt due to rising cement prices. When the dollar was almost N2,000, cement was increased from N7,500. Now that the exchange rate has stabilized at N1,400 and is still declining, why should cement still be selling for N9,500?
“We are requesting cement manufacturers to reduce the price to N7,000. If they fail to do so within a week, I will officially take up the matter with Mr. President.”*
Umahi also made it clear that going forward, there would be no cost variations in the project unless in accordance with the Conditions of Contract, rather than at the contractor’s discretion.
Reaffirming the Federal Ministry of Works’ commitment to quality and timely project delivery under the Tax Credit Scheme, Umahi stated:
*”This ministry is responsible for ensuring that contractors deliver quality projects.”*
He referenced multiple site inspections he had conducted, which, according to him, had compelled contractors to improve efficiency and maintain high standards.
Outlining key conditions for the project, he stated:
– The Enugu-Onitsha dual carriageway must be completed by May 10, 2025.
– The financier will be held accountable if the road fails due to substandard work by the contractor.
– No price variation or adjustment (VOP) will be allowed outside the conditions outlined in the contract.
– The contractor, RCC, must ensure compliance with contract terms rather than making arbitrary changes.
– The funding responsibility must not be compromised by the financier’s pursuit of profit, as delays in funding would hinder project completion and affect public perception of the government’s commitment.
– A formal agreement between MTN and the Federal Ministry of Works must be established, ensuring adherence to the outlined conditions to prevent delays and cost escalations.
Umahi warned that project delays could lead to unnecessary variations, which would not be tolerated.
