Reasons for higher cost of cement in Nigeria compare to overseas

Aliko Dangote

… tax overburden stands out as influencer of price.

Aliko Dangote, President of Dangote Group, has attributed the higher domestic price of his company’s cement to Nigeria’s heavy tax burden and regulatory framework.

Speaking on the price disparity between local and exported cement, Dangote explained that exporting allows his company to bypass numerous taxes that significantly 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,” he said.

He detailed the tax savings on exports: “I’m not paying 30% income tax, I’m not paying 2% education tax, I’m not paying 1% health levy, I’m not paying 7.5% VAT, and I’m not paying 10% withholding tax.”

These exemptions, Dangote noted, enable his company to price Nigerian cement competitively against international producers from countries like Turkey, Russia, and China.

“When you reduce all these taxes, I can afford to go and compete in the international market,” he explained.

The billionaire industrialist, a vocal advocate for local manufacturing and economic self-sufficiency, addressed a question that has puzzled many observers: why Dangote products often sell for less outside Nigeria than within.

His comments highlight how Nigeria’s tax structure creates a paradox where locally manufactured goods become more affordable for export than for domestic consumption—a situation many view as indicative of deeper structural challenges in the nation’s economy.