The Federal Government of Nigeria has called on cement manufacturers to reduce prices to N7,000 per bag, citing improved economic conditions that should justify the price drop.

The Minister of Works, Sen. Engr. Nweze David Umahi, issued this demand during a meeting at the ministry’s headquarters in Abuja on February 26, 2025, as reported in an official statement on the ministry’s website. Umahi insisted that with the naira stabilizing at N1,400 per dollar and petrol prices falling, cement manufacturers have no reason to keep prices at N9,500 per bag, an increase that was implemented when the naira was nearing N2,000 per dollar.

Umahi criticized manufacturers for failing to adjust cement prices despite the naira’s recent gains, questioning why they were quick to raise prices during the currency’s depreciation but have been slow to reverse them as it rebounds.

“Today, a dollar is about N1,400. And let me use the opportunity to express dissatisfaction with the cost of cement.

“We are using this medium to tell the cement manufacturers that at the time the dollar was almost N2,000, they increased cement from N7,500. Why should today, when the President has brought the dollar to stability to about N1,400 and is still going down, cement be selling for N9,500? We are requesting cement manufacturers to bring down the cost of cement to N7,000.”

The Works Minister emphasized that affordable cement is crucial for national infrastructure development, particularly the government’s transition to Continuously Reinforced Concrete Pavements (CRCP) for road construction, which he described as more durable and cost-effective compared to asphalt.

He also revealed that the high cost of cement is forcing many contractors to reconsider the government’s plan to switch to concrete roads, with some preferring asphalt due to its relatively lower upfront costs.

If this trend continues, it could derail the federal government’s infrastructure strategy, which prioritizes concrete roads for their durability and long-term cost-effectiveness.

Manufacturers and Consumers Dispute Government’s Claims

However, this assertion has sparked debate and skepticism as both cement producers and consumers argue that the claimed economic improvements are not reflected in real market conditions.

Industry leaders in the cement sector note that the cost of production remains high, even with the naira’s partial recovery. They cite rising energy costs, particularly the price of diesel and gas, which remain significantly elevated.

Additionally, they highlight:

• Persistent high transportation costs due to poor infrastructure.
• Increased raw material costs, many of which are still subject to import price fluctuations.
• High interest rates on loans used to finance cement production.

Manufacturers insist that until these fundamental cost pressures ease, cement prices cannot be reduced significantly.

Consumers’ Perspective

On the consumer side, ordinary Nigerians say that the supposed economic improvements the government is touting have not translated into lower costs of living. While government reports indicate that inflation is slowing down and GDP is growing, these figures are not yet reflected in the prices of essential goods and services.

Umahi’s Ultimatum: Price Must Drop in One Week

The minister issued a one-week ultimatum for cement manufacturers to lower their prices, warning that failure to do so would force him to escalate the matter to President Bola Tinubu for further action.

However, this is not the first time a government official under Tinubu’s administration has criticized cement manufacturers for price hikes.

In February 2024, Musa Dangiwa, the Minister of Housing and Urban Development, condemned the excessive increase in cement prices, accusing manufacturers of using foreign exchange fluctuations as an excuse to inflate costs and worsen Nigeria’s economic crisis.

Dangiwa pointed out that cement prices had surged from N5,500 to over N10,000 per bag, a more than 100% increase in just months. He urged manufacturers to seek innovative solutions instead of passing on every cost to consumers.

He also warned that rising cement prices posed a serious threat to the government’s housing projects, especially for low-income earners and vulnerable Nigerians.

While government agencies continue to publish data suggesting an economic recovery, the stark reality remains that essential commodities, including cement, food, and transportation, have not seen any meaningful price reductions. This contradiction has led many Nigerians to question the accuracy of official economic reports and whether the “improved conditions” cited by the government truly exist.

Nigerians are exercising their rights to sue a private company in order to compel it to change its business model. Yes, MultiChoice must offer pay per view even if it does not make sense for it. That mindset is why they have already sued the owner of DStv and GOtv in the court after a price increase, and to make the agitation strong, they added the attorney general of Nigeria.

The AGF’s lawyer also confirmed filing a motion to strike out the case, prompting the judge to ask the claimant if he had received all responses and if he had filed a reply.

“Yes, my Lord, I have responded,” the claimant said but added that further affidavits needed to be exchanged between him and the legal teams of the AGF and NBC.

In response, Justice Ekwo stated: “I am going to give you a date for the hearing, believing that by then, parties should have filed and exchanged whatever necessary processes.”

The judge subsequently fixed the hearing for May 6, 2025.

The AGP rightfully wants the office off the mess: “The Office of the Attorney-General of the Federation (AGF) and Minister of Justice has urged the Federal High Court in Abuja to remove his office from a lawsuit seeking to compel MultiChoice Nigeria to introduce a pay-per-view model for its DStv and GOtv services.”

Good People, right now, in the banking system, a big bank cannot credit your account for days after a deposit, and as that is happening, the consumer protection watchdog and the activist citizens have not said a single word. Yet, they all have time to protect Nigerians who want to watch millionaires kick round leather in Europe when their citizens cannot have access to their bank accounts, over another bank software upgrade.

Our priorities are intriguing in all ways! Is watching TV shows now human rights?

Nigeria’s Attorney General Asks Court to Remove His Office From A Lawsuit Seeking Pay-Per-View Model for DStv and GOtv

The Office of the Attorney-General of the Federation (AGF) and Minister of Justice has urged the Federal High Court in Abuja to remove his office from a lawsuit seeking to compel MultiChoice Nigeria to introduce a pay-per-view model for its DStv and GOtv services.

The AGF, who is named as the fourth defendant in the case, insists that the lawsuit is an abuse of the court process and lacks any legal basis, arguing that it should be struck out immediately.

The lawsuit, filed on April 29, 2024, by Maduabuchi O. Idam Esq. (Suit No. FHC/ABJ/CS/563/2024), demands that MultiChoice introduce a pay-per-view billing system that would charge Nigerian customers based only on the time they actively watch content. The suit also seeks an order to compel the company to roll over unused subscriptions upon expiration, ensuring that customers fully benefit from their payments.

This legal battle comes at a time when MultiChoice has announced another price hike for its DStv and GOtv packages, which is set to take effect on March 1, 2025. The price increase follows a series of similar hikes in recent years, which the company has justified by citing exchange rate volatility, rising content costs, and increased electricity tariffs.

What Transpired in Court

At the court session on February 19, 2025, presided over by Justice Inyang Ekwo, MultiChoice’s lawyer, Moyosore J. Onigbanjo (SAN), made it clear that the pay-TV provider was opposing the lawsuit.

Justice Ekwo then inquired whether the Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) had filed their responses to the lawsuit. The legal representatives of both agencies confirmed that they had submitted counter-affidavits opposing the claimant’s suit.

The AGF’s lawyer also confirmed filing a motion to strike out the case, prompting the judge to ask the claimant if he had received all responses and if he had filed a reply.

“Yes, my Lord, I have responded,” the claimant said but added that further affidavits needed to be exchanged between him and the legal teams of the AGF and NBC.

In response, Justice Ekwo stated: “I am going to give you a date for the hearing, believing that by then, parties should have filed and exchanged whatever necessary processes.”

The judge subsequently fixed the hearing for May 6, 2025.

AGF’s Motion to Strike Out the Suit

In its motion dated October 25, 2024, the AGF formally requested the court to strike out or dismiss the lawsuit on the grounds that the claimant failed to establish any cause of action against the AGF. The AGF’s legal team, led by Maimuna Lami Shiru, argued that the lawsuit had no connection to the office of the Attorney-General, making it inappropriate for the AGF to be named as a defendant.

Shiru further argued that: “The AGF is not a regulatory body in respect of the subject matter of the claim and has no business in the suit.

“The AGF is not a proper or necessary party to the suit.

“The originating process is premature and defective as it relates to the AGF.”

The AGF’s office emphasized that it does not regulate MultiChoice or any other TV provider in Nigeria, accusing the claimant of failing to seek the court’s permission before filing the case. The AGF’s lawyer labeled the lawsuit as frivolous, urging the court to strike it out immediately.

Push for Pay-Per-View Has Been Ongoing for Years

For years, Nigerian consumers have demanded that MultiChoice introduce a pay-per-view model, believing it would offer a fairer pricing system by allowing them to pay only for the content they consume. The issue has sparked legislative and regulatory interventions, but MultiChoice has consistently rejected the proposal, arguing that such a model is not technically or financially viable in Nigeria.

Chief Executive Officer of MultiChoice Nigeria, John Ugbe, told a Senate committee in 2022: “Whilst it may appear to be a noble intent for this Committee to be concerned over the rising cost of subscription services; however, the Pay-Per-View (PPV) model being canvassed by this Committee will not work either to the benefit of the consumer or the industry.

“It would appear that this problem is because of some confusion in understanding the basic definitions and distinctions between some of the existing operational business models in telecommunications and pay-tv broadcasting.”

Industry experts and pay-TV analysts have also warned that a pay-per-view system would be highly expensive and unaffordable for most Nigerian subscribers. Unlike cable providers in the United States, where pay-per-view is used for one-off events like boxing matches and concerts, implementing such a model for daily television programming would require a completely different pricing structure that could result in higher costs for consumers.

Since 2016, the Nigerian National Assembly has been investigating MultiChoice over its pricing model, with lawmakers at one point, urging the company to introduce pay-per-view billing. However, after a review of the pay-TV business model, and following a series of interventions, the National Broadcasting Commission (NBC) said it has no enabling law to either regulate or control the prices being charged by cable television operators.

MultiChoice has been at the center of numerous legal disputes over its pricing structure. In 2024, a Nigerian tribunal fined MultiChoice N150 million and ordered the company to provide a one-month free subscription to customers after it was found to have violated an interim court order. However, MultiChoice challenged the ruling, and the case was eventually struck out after a public interest lawyer withdrew the suit.

Despite these legal battles, MultiChoice has continued to raise its subscription fees, citing economic pressures. Its latest price increase, set to take effect on March 1, 2025, comes after the company suffered a significant loss of subscribers in 2024 due to repeated price hikes, inflation, and the difficult economic environment.