In a significant move set to bolster Nigeria’s economic and infrastructural transformation, Africa’s cement giants—Dangote Group and BUA Group—have agreed to freeze cement prices for all contractors working on federal projects under President Bola Tinubu’s Renewed Hope Agenda
Chairman of BUA Group, Abdul Samad Rabiu, revealed this on Thursday following a high-level meeting with the President at the State House, Abuja. The strategic agreement aims to stabilise input costs and accelerate the execution of federal infrastructure, particularly in housing and road construction.
The price freeze will apply exclusively to contractors engaged in key federal infrastructure initiatives including the Renewed Hope Cities, Renewed Hope Estates, and the Social Housing Programme. These projects are pivotal to Tinubu’s housing vision of delivering affordable, accessible, and inclusive shelter to millions of Nigerians.
Rabiu disclosed that the price stabilization proposal originated from Alhaji Aliko Dangote, Chairman of Dangote Group, who approached him with the initiative. “I must give him credit,” Rabiu said, affirming his full support for the proposal. “We have agreed to freeze the price of cement for any contractor involved in the Renewed Hope projects.”
While inflation and foreign exchange fluctuations have driven up input costs across industries, Rabiu stressed that cement manufacturers are committed to supporting government initiatives without raising prices. He explained that even at N10,000 per bag—equivalent to $120 per ton—Nigeria’s cement remains competitive with global pricing.
Production costs remain high, Rabiu added, due to rising energy prices and the cost of imported spare parts, both largely dollar-denominated. Nonetheless, cement producers are prioritising national development goals over profit margins.
Rabiu commended Minister of Works, David Umahi, for promoting the use of concrete over bitumen for road construction, noting its long-term benefits in cost and durability. “Concrete roads last longer and are ultimately cheaper,” he said, adding that the decision aligns with the industry’s goals for sustainable infrastructure.
To institutionalize compliance, BUA’s Managing Director, Yusuf Binji, has been appointed as Chairman of the Cement Manufacturers Association of Nigeria (CEMAN). His role will include ensuring uniform pricing for all Renewed Hope-related construction works across the industry.
This appointment marks a push toward tighter collaboration within the cement sector and underscores the government’s intent to build trust with industry stakeholders.
Beyond price control, cement manufacturers are also backing human capital development. Rabiu announced that producers will contribute between N20 and N30 per bag of cement to revive the Cement Technology Institute of Nigeria (CTIN), a move expected to generate up to N20 billion annually.
“We’re revamping CTIN to train artisans and technical personnel. This will bridge the skills gap in construction and sustain the progress we’ve made in local cement manufacturing,” Rabiu noted. Aliko Dangote will remain Chairman of the CTIN board, while Dahiru Mangal of Mangal Cement joins as a new member.
On a related economic front, Rabiu credited President Tinubu’s temporary duty waivers on critical food imports for helping to lower the prices of rice, maize, and flour. BUA Foods, leveraging the waiver, imported large volumes of staple grains, reducing consumer costs dramatically.
“Rice now sells for around N60,000 per 50kg bag—down from N110,000 last year. Flour is N55,000, and maize is N30,000,” Rabiu said. The sharp drop in prices, he explained, was a direct result of increased supply that outpaced the efforts of hoarders.
“Those who hoarded local paddy to inflate prices post-harvest are now losing money. We broke the cycle,” he added.
To sustain market equilibrium, the Rice Millers Association of Nigeria has pledged to discourage hoarding and ensure stable market availability. Rabiu affirmed that with current stock levels, Nigeria has enough rice to last through the year, even before the next harvest season.
“Farmers will still benefit from fair market prices, but speculators can no longer manipulate the system,” he stressed.
The cumulative effect of these initiatives points to growing synergy between the private sector and the federal government under President Tinubu’s administration.
Rabiu praised Tinubu’s bold reforms and proactive stance on infrastructure, economic diversification, and food security. “Mr President was satisfied with our report. He encouraged us to do more—and that’s exactly what we intend to do.”
This industry-wide alliance—stretching from cement and construction to food and agriculture—signifies a broader confidence in the Tinubu administration’s roadmap for national recovery and long-term economic resilience.