The Federal Government has intensified pressure on cement manufacturers to reduce the cost of cement, warning that the current pricing regime is placing a heavy burden on ongoing infrastructure projects and triggering growing demands from contractors for contract variations.
Minister of Works, Senator David Umahi, stated this on Sunday while delivering a keynote address at the unveiling of the new corporate identity of Lafarge Africa, which has been rebranded as HBM following its acquisition by the Chinese-based HUAXIN Group.
This was disclosed in a statement issued by the minister’s Senior Special Assistant on Media, Francis Nwaze, on Monday. Speaking before industry leaders, investors and stakeholders in Lagos, Umahi said the government would begin formal engagements with cement manufacturers from July 1 to address what he described as the persistent challenge of high cement prices.
The minister stressed that manufacturers must take responsibility for reducing costs rather than expecting the government to continually adjust project contracts to reflect rising material prices.
The statement read, “The Minister of Works, David Umahi, CON, has called on cement manufacturers across the country to immediately reduce the price of cement, insisting that the current cost of the product is placing pressure on ongoing infrastructure projects and increasing demands for contract variations.
