Soaring cost of cement is taking toll on Federal Government road projects, Minister for works said yesterday.

It said the trend, if not checked, could hamper government’s delivery on projects, especially on roads and the Renewed Housing Projects.

The government has scheduled series of engagement with cement manufacturers from July 1 to discuss on to how to reverse the trend.

A 50kg bag of cement sells for not less than N12,500.

The planned government-stakeholders’ engagement followed a call by Works Minister David Umahi on the manufacturers to reduce the price of their product.

He warned that the high cost has started putting pressure on infrastructure projects and increasing demands for cost variations by contractors.

In his keynote remarks in Lagos yesterday at the unveiling of HBM as Lafarge Nigeria’s new corporate identity, Umahi said the government would hold discussions with manufacturers to address the situation. HBM is a member of the HUAXIN Group,.

The minister said: “I want to insist that Lafarge, now HBM and other manufacturers of cement should reduce their prices.”

According to Umahi, contractors handling government projects now mount pressure for project cost reviews due to rising construction costs. He argued that manufacturers should address the challenge by reviewing their pricing.

“We shall be engaging on this from first of July. Manufacturers of cement must reduce their prices because the contractors are choking me to review their contracts. But nobody is reviewing anybody’s contract. It’s the manufacturers of cement that should review their cost,” he said.

Umahi said the government’s infrastructure investments, under the President Bola Tinubu administration, had created significant opportunities for cement producers and other players in the construction sector.

A statement by the minister’s media aide, Francis Nwaze urged HBM and other manufacturers to increase their production capacity to meet the growing demand driven by ongoing infrastructure projects across the country.

Congratulating the company on its rebranding, the minister assured HBM of government’s readiness to partner with the firm to support expansion and investment.

“The market is smaller than what the President is doing. So, enlarge your coast,” he said.

Highlighting key projects of the administration, Umahi cited the Lagos-Calabar Coastal Highway as evidence of the scale of infrastructure development being pursued by the Federal Government.

The multi-billion naira project, he noted, had attracted international attention, with evaluators commending its quality and value.

“When the World Bank came to evaluate our project, they said it was undervalued and that the project is of topmost quality. Today, our neighbouring nations are coming to steal the technology of the coastal highway,” Umahi said. (The Nation)

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