Dangote Blames High Cement Prices in Nigeria on Taxes and Regulatory Levies, Exports Cheaper Abroad

Aliko Dangote, President of Dangote Group, has highlighted heavy taxation and multiple regulatory levies as the main factors driving up cement prices in Nigeria, noting that the same products sell for less in foreign markets.

Speaking on the challenges facing local manufacturing, Dangote explained that the price gap between domestic and exported cement is largely due to statutory deductions and compliance costs borne by manufacturers within Nigeria.

He pointed out that exporting cement allows his company to bypass several taxes and regulatory fees, reducing production costs and making exported cement more competitively priced. “When you look at my invoice, the cement I export is cheaper than the one I’m selling domestically, because I’m not paying 30% income tax, 2% education levy, 1% health levy, 7.5% VAT, or 10% withholding tax,” Dangote said.

The industrialist emphasized that the cumulative effect of these taxes and charges significantly inflates local production costs, making it difficult for Nigerian manufacturers to compete with international suppliers from countries such as Turkey, Russia, and China.

Dangote’s remarks underscore ongoing concerns about Nigeria’s tax framework and its impact on key sectors like cement, which is vital for infrastructure and housing development. He reiterated his commitment to promoting local manufacturing as a driver of economic growth, job creation, and industrial development, while urging policymakers to address structural bottlenecks that increase production costs.