In a landmark move to bolster President Bola Tinubu’s Renewed Hope Agenda, Nigeria’s leading cement manufacturers, spearheaded by BUA Group and Dangote Cement, have pledged to freeze cement prices for contractors engaged in Renewed Hope Projects.
The announcement, made by Abdul Samad Rabiu, chairman of BUA Group, follows a high-level meeting with President Tinubu at the State House in Abuja on Thursday, signaling a collaborative effort to drive infrastructural development and economic stability.
Rabiu revealed that the decision to stabilize cement prices was initiated by Aliko Dangote, Chairman of Dangote Cement, who proposed the measure to support the President’s vision for transformative infrastructure projects.
Alhaji Aliko Dangote approached me, and I concurred that we should do everything to support Mr. President’s Renewed Hope Agenda, Rabiu stated. “We have decided to freeze the price of cement for any contractor involved with Renewed Hope Projects. There will be no increase for the foreseeable future.”
This unprecedented commitment ensures that contractors working on projects under the Renewed Hope Agenda—ranging from housing to road construction—will benefit from predictable cement costs, shielding them from market volatility. Rabiu emphasized that the initiative reflects the industry’s dedication to national development, with formal communication to the Ministry of Works expected next week.
The move aligns with the government’s push for durable infrastructure, particularly through the adoption of concrete roads. Rabiu commended the Minister of Works, Engineer David Umahi, for championing concrete-based road construction, noting its superior durability and cost-effectiveness compared to bitumen. “Concrete roads are more durable and cheaper in the long run,” Rabiu said, highlighting the synergy between the price freeze and the ministry’s infrastructure goals.
Beyond cement, Rabiu announced significant strides in reducing food prices, attributing the success to President Tinubu’s “foresighted” policy of granting a six-month duty waiver on imported food items in 2024. BUA Foods, a subsidiary of BUA Group, capitalized on this policy by importing substantial quantities of wheat, maize, and rice, which helped stabilize and reduce the cost of staple foods.
Last year, food prices were astronomical, Rabiu recalled. “Rice was about N100,000 per 50kg bag, flour was N80,000, and maize was N60,000. Through the president’s duty waiver, we imported and processed these commodities, crashing prices significantly.” As of today, rice prices have dropped to approximately N60,000 per 50kg bag, flour to N55,000, and maize to N30,000, marking reductions of up to 50% in some cases. Pasta prices have also fallen, with cartons now retailing below N20,000.
Rabiu credited the duty waiver for enabling BUA Foods to flood the market with affordable commodities, easing the burden on Nigerian households grappling with inflation. “The moment our shipments arrived, we started processing and brought down prices,” he said, underscoring the company’s commitment to sustaining these reductions.
WHAT YOU SHOULD KNOW
The dual initiatives—cement price stabilization and food cost reduction—represent a strategic alignment between Nigeria’s private sector and the government’s economic priorities. The cement price freeze is poised to accelerate the execution of Renewed Hope Projects, which include affordable housing, road networks, and other critical infrastructure aimed at improving living standards and stimulating economic growth.
By ensuring cost predictability, the initiative could attract more contractors and expedite project timelines.
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