By Daniel Tyokua
The Minister of Works, Senator David Umahi, has expressed concern over the rising cost of cement in the country, saying it is placing demands for contract variations on ongoing infrastructure projects.
Umahi stated this during the unveiling of the new corporate identity of Lafarge Africa (HBM)in Lagos over the weekend.
A statement issued on Monday by the minister’s Senior Special Assistant on Media, Francis Nwaze, said the high cost of cement is affecting the execution of critical infrastructure projects nationwide and prompting contractors to seek upward reviews of contract sums.
The minister revealed that the Federal Government would begin engagements with cement manufacturers from July 1 to address the issue of escalating prices.
He noted that the administration of President Bola Tinubu is making substantial investments in critical infrastructure across the country, creating significant opportunities for manufacturers and investors.
Umahi urged HBM and other cement producers to expand their production capacity to meet the growing demands generated by the government’s infrastructure development agenda.
He also highlighted progress being recorded under the Renewed Hope Agenda, particularly in infrastructure development, citing the Lagos-Calabar Coastal Highway as evidence of the administration’s commitment to national transformation.
The statement readds:“I want to insist that Lafarge, now HBM, and other cement manufacturers should reduce their prices.
“We shall be engaging them from July 1. Cement manufacturers must reduce their prices because contractors are mounting pressure on me to review their contracts. But nobody is reviewing any contract. It is the manufacturers that should review their costs.”
The minister further stated that international evaluators had commended the quality of the Lagos-Calabar Coastal Highway project.
“When the Deutsche Bank came to evaluate our project, they said it was undervalued and that the project is of top quality. Today, our neighbouring countries are coming to learn the technology behind the coastal highway,” he said.
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