Manny Ita –
FG: Lower Gas Prices Key to Reducing Cement Cost
The Federal Government has revealed that reducing gas prices for manufacturers could significantly bring down the cost of cement across Nigeria, offering potential relief to millions of consumers and builders.
The Minister of Trade and Investment, while briefing the House of Representatives, explained that cement production in the country is heavily dependent on gas as a primary energy source. According to the minister, the high cost of gas supply has been a major factor driving up production expenses for cement manufacturers, which is ultimately reflected in market prices.
He noted that despite Nigeria’s abundant natural gas reserves, pricing and supply challenges continue to affect industrial users. Addressing these issues, he said, would not only reduce cement prices but also boost local manufacturing, infrastructure development, and job creation.
The minister emphasized that discussions are ongoing between the government, gas suppliers, and cement producers to find a sustainable pricing framework that balances affordability with industry viability. He added that improving domestic gas utilization remains a priority for the administration.
Lawmakers expressed concern over the rising cost of cement, which has impacted housing projects and construction nationwide. They urged the government to fast-track policies that will ease production costs and make building materials more accessible to ordinary Nigerians.
Industry stakeholders have long argued that energy costs—particularly gas—account for a significant portion of cement production expenses, making pricing reforms a critical step toward stabilizing the market.
