President of the Dangote Group, Aliko Dangote, has attributed the higher cost of cement in Nigeria compared to prices in foreign markets to the country’s tax structure and regulatory environment.
Speaking on the price difference between locally sold and exported cement, Dangote explained that exports attract significantly fewer charges, allowing his company to offer lower prices abroad than within Nigeria. According to him, multiple taxes and levies imposed on domestic production substantially raise operating costs.
Dangote noted that cement shipped outside the country is exempt from several statutory payments that apply to local sales, including corporate income tax, value-added tax, education and health levies, as well as withholding tax. He said avoiding these charges gives his company greater flexibility to price competitively in international markets.
By operating under a lighter tax burden for exports, Dangote said his cement can compete effectively with products from major global producers such as Turkey, Russia, and China. He added that the reduced costs make Nigerian-made cement attractive beyond the country’s borders, despite higher domestic prices.
The industrialist, a long-time advocate of local manufacturing as a path to economic independence, said the situation highlights broader structural challenges within Nigeria’s fiscal system. Analysts note that the disparity in pricing underscores how domestic tax policies can make locally produced goods more expensive at home than abroad.
Observers say the issue raises questions about the balance between revenue generation and supporting local industries, with many calling for reforms that would ease the burden on manufacturers and make essential products more affordable for Nigerian consumers.
