Africa’s richest man, Aliko Dangote, has attributed the price difference between cement sold in Nigeria and that exported to other countries to Nigeria’s heavy tax regime and regulatory costs. He said Nigeria’s fiscal structure makes locally produced goods more expensive at home than abroad.
Dangote, whose companies dominate Nigeria’s cement market and have expanded across Africa, explained that exporting cement allows manufacturers to bypass multiple taxes and levies imposed on domestic sales.
Speaking during a recent media interaction, he said these charges significantly raise production and retail costs for Nigerian consumers.
According to him, cement exported from Nigeria is cheaper because it is exempt from several taxes, including company income tax, education tax, health levies, value-added tax and withholding tax, all of which apply to products sold locally.
“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,” Dangote said. “In export, I’m saving a lot of money. I’m not paying 30 per cent income tax, I’m not paying education tax, health levies, VAT or withholding tax.”
He explained that removing these costs enables Nigerian cement to compete internationally with producers from countries such as Turkey, Russia and China, adding that the current system effectively shifts the burden of multiple taxes onto local consumers.
Industry analysts say Dangote’s remarks highlight deeper structural issues within Nigeria’s economy, where fiscal and regulatory policies often discourage local consumption while favouring exports. They note that despite repeated government campaigns promoting local manufacturing as a solution to high prices, domestic producers still face high operating costs that are passed on to consumers.
The billionaire industrialist also linked the issue to wider debates surrounding his $20 billion Dangote Refinery, which was built to reduce Nigeria’s dependence on imported fuel but has faced criticism over pricing, market dominance and private ownership.
Dangote said the refinery was designed to address Nigeria’s long-standing fuel scarcity, noting that fuel queues have plagued the country for decades. He argued that opposition to the project overlooks its potential to stabilise fuel supply, ease pressure on foreign exchange and create jobs.
“Since the early 1970s, Nigeria has had problems with fuel queues. Somebody has addressed this problem, and instead of support, people are calling the company names,” he said.
He rejected calls to rely on fuel imports to regulate prices, insisting that Nigeria should instead encourage more domestic investment in refining and energy infrastructure. According to him, increased competition among local producers would naturally curb monopoly concerns and improve regulation.
“What you do is invite more people to invest. When you have many investors, then you can regulate market share,” Dangote said. “You don’t use imports to checkmate domestic production because you are creating jobs elsewhere.”
Dangote’s comments suggest that the high cost of cement and other locally produced goods may be less about profiteering and more about Nigeria’s broader business environment. Analysts say unless structural costs, tax burdens and regulatory inefficiencies are addressed, the paradox of Nigerian products being cheaper abroad than at home is likely to persist.
