FG Sets New Cement Price, Orders Dangote, BUA, Others to Adjust Immediately
- The Nigerian government has asked cement manufacturers in the country to reduce the price of their products
- Dangote Cement, BUA Group, Lafarge Africa and Ibeto Cement are the leading cement manufacturers
- Cement prices according to the market showed that the average price for a bag of cement is about N9,000
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
The federal government has called on cement manufacturers to reduce the price of a bag to N7,000.
David Umahi, the minister of works made this call during a meeting with MTN and RCC Company Nig. Ltd over the slow funding and execution of the Enugu-Onitsha Expressway at the Ministry’s headquarters in Abuja on February 26, 2025.
Source: Getty Images
In a statement posted on the ministry’s website, Umahi urged cement manufacturers to reduce the price of cement to N7,000 immediately, highlighting its importance in the construction industry, particularly for Continuously Reinforced Concrete Pavements.
He specifically cited that the naira has stabilised at about N1,400 per dollar in the forex markets and that petrol prices have dropped, creating a conducive environment for reduced cement costs.
Umahi raised concerns that the current price of a bag of cement has remained at N9,500, stating that since manufacturers justified price increases when the dollar was nearly N2,000, the naira's recovery means it is time for adjustments.
His words:
"Our contractors have called and complained that they wanted to move back to asphalt. We are using this medium to tell the cement manufacturers that at the time, the dollar was almost N2,000, they increased cement from N7,500.
"Why should today that the President has brought dollar to stability to about N1400, and is still going down, why should cement be selling for N9,500? We are requesting cement manufacturers to bring down the cost of cement to N7,000. If after one week they don't do that, I have to complain officially to Mr. President."
The works minister also stressed that affordable cement is crucial for completing key infrastructure projects.
Source: Getty Images
BUA Cement restates its commitment to reducing price
In another update, the minister of works inspected BUA Cement’s facility in Sokoto and received a commitment from the company to adjust cement prices.
Commenting on the facility tour, Umahi said:
“We have been there, we have seen it, and it's quite amazing, the complexity of BUA’s cement factory in Sokoto.”
BUA Cement’s Group Executive Director, Alhaji Kabir Rabiu, expressed willingness to collaborate with the federal government to make cement more affordable.
Quoted in a statement by the ministry, Rabiu said:
“We also gave our commitment that we don’t believe cement should sell for more than 7,000 naira anywhere in Nigeria.”
Dangote, Lafarge, BUA revenues increase
Earlier, Legit.ng reported that Nigeria's three top cement manufacturers, Dangote, BUA and Lafarge reported a combined N3.62 trillion in revenue in the first nine months of 2024 (January to September).
The amount represents a 69.4% increase from N2.13 trillion combined revenue reported by the companies in the same period of 2023.
The figures were analysed from the cement companies' financial statements obtained from the NGX.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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