Aliko Dangote, President of the Dangote Group, has explained that cement produced in Nigeria is often sold at a higher price domestically than internationally due to the country’s heavy tax regime and regulatory costs.
Speaking in a report published by Business Insider Africa, Dangote noted that cement exported from Nigeria benefits from extensive tax exemptions that are not available to manufacturers serving the local market. These exemptions significantly lower production and operational costs, making exported cement more competitive in international markets.
According to him, cement exports are exempt from several statutory charges, including company income tax, education tax, health levies, value-added tax (VAT), and withholding tax. As a result, Nigerian cement can compete more effectively with products from countries such as Turkey, Russia, and China.
“When you look at my invoice, the cement I export is cheaper than the one I sell domestically. That is simply how exports work,” Dangote said. “For exports, I am not paying 30 per cent company income tax, 2 per cent education tax, 1 per cent health levy, 7.5 per cent VAT, or 10 per cent withholding tax. These savings make a significant difference.”
Dangote emphasized that Nigeria’s fiscal structure places a disproportionate burden on domestic consumers, who ultimately bear the cost of multiple taxes and regulatory inefficiencies. While stressing the importance of local manufacturing, he argued that high prices cannot be sustainably addressed without comprehensive reforms to the country’s tax and regulatory framework.
Currently, the retail price of cement in Nigeria ranges between ₦10,200 and ₦10,500 per bag, depending on location.
He concluded that meaningful reductions in cement prices would require policy measures aimed at easing the tax burden on local producers and improving the overall business environment in Nigeria.
Source: Gistreel.com
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