BUSINESS
DANGOTE FAULTS DOMESTIC COST BURDEN AS EXPORTS SELL CHEAPER ABROAD, SAYS MULTIPLE TAXES, REGULATORY LEVIES DRIVE UP CEMENT PRICES IN NIGERIA
President of Dangote Group, Aliko Dangote, has attributed the high cost of cement in Nigeria to heavy taxation and multiple regulatory charges imposed on local manufacturers, explaining that these burdens make cement produced in Nigeria more expensive than the same product sold in foreign markets.
Dangote made the disclosure while speaking on the structural challenges confronting local production, noting that the wide price gap between cement sold domestically and that exported abroad is largely a consequence of taxes and levies that manufacturers must bear within Nigeria.
According to Vanguard, the billionaire industrialist explained that exporting cement allows his company to bypass several statutory deductions and regulatory costs that significantly inflate production expenses at home, ultimately pushing up retail prices for Nigerian consumers.
He stressed that the cumulative impact of taxes, fees, and compliance requirements imposed by different government agencies adds substantially to the final cost of cement sold within the country, making it difficult for local manufacturers to maintain competitive pricing.
He said: “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.
“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.”
Dangote’s remarks once again draw attention to the broader debate on Nigeria’s tax regime and its impact on local manufacturing, especially in key sectors such as cement, which plays a critical role in infrastructure development and housing.
Despite these challenges, the billionaire industrialist has consistently advocated for local manufacturing as a strategic pathway to economic self-sufficiency, job creation, and industrial growth, while urging policymakers to address structural bottlenecks that undermine competitiveness and increase production costs within the country.