In a candid revelation that has reignited debate over Nigeria’s economic policies, Africa’s richest man, Aliko Dangote, has disclosed that cement produced in his factories sells for less abroad than it does to Nigerian consumers—and he’s pointing directly at the country’s tax regime as the culprit.
Speaking in an exclusive interview with Business Insider Africa, the chairman of Dangote Group laid bare the mathematics behind a pricing paradox that has long frustrated ordinary Nigerians: why locally manufactured cement often costs more at home than similar products exported to international markets.
“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 explained, detailing a cascade of fiscal obligations that he says fundamentally distort domestic pricing.
According to the industrialist, cement destined for export escapes a punishing gauntlet of taxes and levies that dramatically inflate costs for the domestic market. The list is extensive: a 30% corporate income tax, a 2% education levy, a 1% health levy, a 7.5% Value Added Tax (VAT), and a 10% withholding tax—charges that cumulatively add substantial overhead to production costs for goods sold within Nigeria’s borders.
These exemptions, Dangote argued, are what enable Nigerian cement to compete toe-to-toe with products from established manufacturing powerhouses, including Turkey, Russia, and China, in international markets. But the flip side of this export competitiveness is a domestic market where consumers effectively subsidize the country’s tax collection system through higher prices.
“The consequence of this system is that domestic consumers end up shouldering the burden of structural inefficiencies,” Dangote said, characterizing the situation as symptomatic of deeper policy challenges.
The billionaire’s comments touch a raw nerve in Nigeria, where cement prices have become a lightning rod for broader frustrations about the cost of living and the government’s handling of the economy. For years, Nigerians have questioned why they pay premium prices for a product manufactured on their own soil, while foreign buyers enjoy more favorable terms.
Dangote’s explanation shifts the focus from corporate pricing strategies to government fiscal policy, suggesting that the issue is less about manufacturer profiteering and more about a regulatory and tax environment that makes domestic production prohibitively expensive.
Significantly, the industrialist pushed back against the notion that expanding local manufacturing capacity alone could solve Nigeria’s pricing challenges. Without addressing the underlying tax and regulatory architecture, he suggested, even increased production would fail to deliver meaningful relief to consumers.
The remarks come at a sensitive time for Nigeria’s economy, which continues to grapple with inflation, currency depreciation, and widespread economic hardship. Cement, as a critical construction material, serves as both a barometer of manufacturing costs and a necessity for housing and infrastructure development—making its pricing politically significant.
Dangote’s disclosure may intensify pressure on policymakers to reconsider Nigeria’s tax structure, particularly the differential treatment between export-oriented production and goods for domestic consumption. Critics of the current system argue it perversely incentivizes manufacturers to prioritize foreign markets over local needs, while defenders maintain that export incentives are necessary to generate foreign exchange and remain globally competitive.
For millions of Nigerians struggling with the cost of building materials, however, the technical distinctions may matter less than the bottom line: cement made in their own country remains frustratingly expensive, and according to one of Africa’s most successful industrialists, the government’s tax policies are largely to blame.
The Dangote Group has not announced any plans to adjust its domestic pricing, and government officials have not yet responded to the industrialist’s characterization of the tax burden’s impact on consumer prices.
WHAT YOU SHOULD KNOW
Aliko Dangote has revealed that Nigerian cement costs more at home than abroad, primarily because of Nigeria’s tax structure. Exported cement avoids roughly 50% in combined taxes and levies—including 30% income tax, VAT, education and health levies, and withholding tax—which domestic sales must absorb.
This means Nigerian consumers effectively pay premium prices to cover the government’s tax burden, while foreign buyers get the same product cheaper. Dangote emphasizes that expanding local production alone will not address high prices without reforming the underlying tax and regulatory framework that makes domestic manufacturing expensive.
