Why Dangote Cement Costs More in Nigeria Than Abroad

Aliko Dangote, President of Dangote Group, has attributed the higher domestic prices of his company’s cement to Nigeria’s heavy taxes and regulatory burdens.

Speaking on the price differences between local and exported cement, Dangote explained that exporting allows his company to bypass several taxes that significantly raise production costs within Nigeria.

“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, 2% education tax, 1% health tax, 7.5% VAT, or 10% withholding tax,” he said.

By avoiding these charges, Dangote noted, Nigerian cement could be priced competitively on the global stage, enabling the company to rival producers from Turkey, Russia, and China.

“So when you reduce all these taxes, I can afford to go and compete with the international market,” he added.

Despite his advocacy for local manufacturing as a path to economic self-sufficiency, Dangote’s comments highlight a persistent concern: it is often cheaper to sell Nigerian-made cement abroad than within the country. Observers say this reflects structural issues in Nigeria’s fiscal and regulatory framework, which continue to challenge local industry competitiveness.