President of the Dangote Group, Alhaji Aliko Dangote, has attributed the high cost of cement sold within Nigeria to heavy taxation and regulatory charges imposed on local manufacturers.
Speaking in an interview reported by Business Insider Africa, Dangote said cement produced in Nigeria is often cheaper in foreign markets than at home because exports are shielded from several taxes and levies that apply domestically.
According to him, exported cement benefits from multiple fiscal exemptions, which significantly lower production and selling costs.
Dangote explained that manufacturers do not pay income tax, education tax, health levy, value-added tax (VAT), or withholding tax on cement meant for export, unlike products sold within Nigeria.
“These exemptions make our cement competitive internationally, especially against producers from countries like Turkey, Russia, and China,” he said.
He added that a review of his invoices clearly shows the disparity.
“When you look at my invoice, the cement I export is cheaper than the one sold locally. That is how exports work,” Dangote said.
“In export, I save a lot of money. I am not paying 30 per cent income tax, 2 per cent education levy, 1 per cent health levy, 7.5 per cent VAT, or 10 per cent withholding tax.”
Dangote noted that the structure of Nigeria’s tax system means local consumers ultimately bear the cost of these fiscal and regulatory burdens.
He stressed that expanding local manufacturing alone would not automatically translate to lower prices for Nigerians unless the underlying structural issues are addressed.
Currently, the price of cement in Nigeria ranges between ₦10,200 and ₦10,500 per bag, depending on location and market conditions.
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