The President of the Dangote Group, Aliko Dangote, has identified high taxes and excessive regulatory burdens as the primary reasons why his company’s cement is more expensive within Nigeria than in foreign markets.
Addressing the long-standing debate over price differences, the billionaire industrialist explained that the current fiscal framework in Nigeria makes domestic sales significantly more costly than exports.
He noted that exporting allows the company to bypass several levies that otherwise inflate production expenses at home.
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Detailing the breakdown of these costs, Dangote stated:“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.”
By removing these financial layers, Dangote argued that he is able to position Nigerian cement competitively on the global stage against international giants.
“So when you reduce all these taxes, I can afford to go and compete with the international market, with the likes of Turkey, Russia, and China,” he added.
While Dangote continues to advocate for local manufacturing to achieve economic self-sufficiency, observers point out the irony of locally produced goods being more affordable abroad.
This price gap highlights deep structural flaws in the Nigerian economy, where the tax system effectively penalizes domestic consumers in favor of international trade.
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