Umahi pushes for cement price reduction

Citing strengthened naira and declining petrol prices Works Minister David Umahi yesterday called on cement manufacturers to slash the price of their product to N7,000.

He attributed the appreciating value of the naira and reduction in petroleum product costs to responses to the economic policies introduced by President Bola Ahmed Tinubu.

The minister however cautioned telecom service provider MTN and construction company RCC Nigeria Ltd over the delayed execution of the Enugu-Onitsha Expressway project, funded under the Infrastructure Development and Refurbishment Investment (Tax Credit) Scheme.

According to a statement by his media aide Uchenna Orji, the minister threatened to hold MTN liable for any funding challenges and ruled out any consideration for variation of price (VOP) by the government until the project is completed.

Umahi spoke in Abuja during a meeting with representatives of the two firms – MTN and RCC. Minister of State for Works, Mohammad Bello Goronyo and the Permanent Secretary in the ministry, Mr. O.O. Adebiyi, were at the meeting.

Funding and execution of the Enugu-Onitsha Expressway by MTN and RCC were discussed at the meeting, which reaffirmed May 10, next year completion deadline for the project.

Reaffirming the government’s commitment to maintaining high construction standards, the minister highlighted the need for cost adjustments in line with the improving economic conditions, particularly in the cement sector.

Umahi said: “I’m happy that the policies of Mr. President are working. Today, a dollar is about N,400. At the time the dollar was almost N2,000, cement prices rose from N7,500. Now that the President has stabilized the exchange rate, why is cement still selling at 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 will have to complain officially to Mr. President.”

Regarding the Enugu-Onitsha Expressway project, a resolution was reached with MTN Nigeria and RCC to set a firm completion deadline of May 10, 2026.

The telecom firm was also cautioned about its responsibility in ensuring proper funding, while RCC was reminded of the government’s commitment to contractual obligations.

“There will be no variation or VOP on the project. And RCC must note that going forward, the operation of VOP in their projects must be in accordance with the procedure contained in the Conditions of Contract and not at the whims and caprices of the contractor.

"MTN must not sacrifice its responsibility of funding the project at the altar of business profit, as this will wittingly or unwittingly inhibit speedy delivery and impugn the public perception of the government’s commitment to completing the project.

“There must be a written commitment between MTN and the Federal Ministry of Works to adhere to these conditions. The more the job delays, the more variation becomes a factor.”

The minister also addressed concerns regarding alleged interference by the ministry in the project, clarifying that the decision to halt the use of unsuitable construction materials was in line with the government’s duty to ensure quality.

"We have to put the records straight that this ministry has the responsibility to ensure quality delivery of work by contractors. And the contractor in this case is MTN,” he said.

Elaborating on his site inspections and issues identified, he said: “We went through what MTN was doing. We discovered that they were using peeled sand to do the job.

“I’m an engineer, not a history graduate. I’m a fellow of the Nigerian Society of Engineers and I’ve spent all my life in the field.

"We gave a directive, which is in line with the general conditions of contract, that they should stop using such sand and go back to using river sand, which we paid for.”

The minister also criticized RCC for demanding an additional N14 billion on a N38 billion project under the pretext of inflation, warning that such indulgences by contractors would no longer be tolerated.

Echoing Umahi’s position, Goronyo and the permanent secretary stressed the importance of policies that ensure timely project execution and value for money.

They urged RCC Nigeria Ltd to align with the Renewed Hope Agenda (RHA) vision of the administration and complete the Enugu-Onitsha Expressway on schedule for commissioning by the President.

In his remarks the MTN representative reaffirmed the company’s commitment to meeting the deadline.