Aliko Dangote, President of the Dangote Group, has attributed the skyrocketing cost of locally produced cement to the overwhelming burden of taxes and regulatory hurdles in Nigeria.
Fiscal Policies Inflate Local Prices
In a report by Business Insider Africa, the business mogul pointed out a stark irony: cement exported from Nigeria is sold at a lower price than what Nigerian citizens pay at home. He explained that fiscal policies are responsible for inflating domestic costs, whereas exports benefit from waivers that lower the final price.
Why Exports Are Cheaper
Dangote detailed that the price gap is driven by tax exemptions. Unlike products sold locally, exported cement is free from a litany of levies, including income tax, VAT, and education levies. These savings allow Nigerian cement to remain competitive against international producers from nations like China, Russia, and Turkey.
He stated:
“These exemptions allow Nigerian cement to compete effectively with international producers from countries such as Turkey, Russia, and China,”
He added:
“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, I’m not paying 1% health, I’m not paying 7.5% VAT, and I’m not paying 10% withholding tax,”
Consumers Bear the Brunt
The industrialist emphasized that under the current system, domestic consumers are left to shoulder the cost of these structural inefficiencies. Consequently, the price of cement in Nigeria currently ranges between ₦10,200 and ₦10,500, depending on the location.