Federal Government pressures cement manufacturers for price reduction
via Punch Nigeria10 min read
The Federal Government has urged cement manufacturers to lower prices, citing the burden on infrastructure projects and increased demands for contract variations from contractors. Minister of Works, Senator David Umahi, stated that formal engagements with manufacturers would begin on July 1 to address the high cost of cement. Umahi emphasized that manufacturers should reduce costs rather than expect the government to adjust project contracts due to rising material prices. He made these remarks at the unveiling of Lafarge Africa's new corporate identity as HBM, following its acquisition by China's HUAXIN Group. The minister highlighted that reducing cement prices would support critical infrastructure delivery and benefit ordinary Nigerians. He also encouraged HBM and other industry players to increase production capacity to meet the growing demand from President Bola Tinubu's administration's infrastructure expansion, including projects like the Lagos-Calabar Coastal Highway. Umahi praised President Tinubu's leadership in driving reforms and infrastructure investments, expressing confidence in the administration's agenda to stimulate economic growth and create jobs. This intervention comes amidst concerns from contractors about the rising cost of construction materials, particularly cement.
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