President of Dangote Group, Aliko Dangote, has attributed the higher cost of his company’s cement in Nigeria to the country’s heavy taxes and regulatory burdens. Speaking on the price disparity, Dangote explained that exporting allows his company to bypass numerous levies that inflate production costs domestically.
“When you look at my invoice, the cement I export is cheaper than the one I’m selling domestically, because that’s how exports work. In export I’m saving a lot of money, I’m not paying 30% income tax, I’m not paying 2% education tax, I’m not paying 1% health tax, I’m not paying 7.5% VAT, and I’m not paying 10% withholding tax,” he said.
Dangote noted that reducing these taxes would allow Nigerian cement to compete directly with international producers from countries like Turkey, Russia, and China.
“So when you reduce all these taxes, I can afford to go and compete with the international market, with the likes of Turkey, Russia, and China,” he added.
The billionaire industrialist has long championed local manufacturing as a key driver of economic self-sufficiency. However, the recurring scenario—where Dangote products are often cheaper abroad than at home—highlights structural flaws in Nigeria’s fiscal and regulatory framework, raising questions about the cost of doing business in the country.
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