Aliko Dangote, Africa’s richest individual and founder of the Dangote Group, has explained that cement produced in Nigeria costs more locally due to high taxes and regulatory levies. Exports benefit from exemptions that lower prices abroad.
Okay News reports that Dangote addressed the price disparity in an interview with Business Insider Africa. Domestic consumers bear burdens absent in export markets.
Exported cement avoids multiple charges applied locally. These include 30 percent income tax, 2 percent education levy, 1 percent health contribution, 7.5 percent VAT, and 10 percent withholding tax.
“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,” Dangote stated.
“In export I’m saving a lot of money, I’m not paying 30% income tax, I’m not paying 2% education, I’m not paying 1% health, I’m not paying 7.5% VAT, and I’m not paying 10% withholding tax,” he added.
The exemptions enable Nigerian cement to compete globally against producers from Turkey, Russia, and China. Domestic sales incorporate these fiscal obligations.
Dangote noted that local manufacturing alone cannot resolve pricing challenges. Structural inefficiencies shift costs to Nigerian buyers.
Current retail prices for a 50kg bag range between N9,500 and N10,200. This persists despite earlier calls for reductions.
In February 2025, Minister of Works Senator David Umahi urged lowering to N7,000. He cited naira stabilisation around N1,400 per dollar and falling petrol costs.
Umahi criticised delayed adjustments after earlier hikes during currency volatility near N2,000 per dollar. Affordable cement supports infrastructure like concrete pavements.
Minister of Housing and Urban Development Ahmed Dangiwa raised similar concerns in 2024. Prices had doubled from N5,500 to N10,000, threatening housing programmes for low-income groups.
These statements highlight ongoing debates over manufacturing costs and consumer impact. Tax incentives for exports contrast with domestic burdens.
The explanation underscores policy trade-offs in promoting exports versus local affordability. It fuels discussions on fiscal reforms for essential commodities.
