Dangote Links Cement Prices To Nigeria’s Tax System

ALIKO Dangote has explained that the high price of cement in Nigeria is largely due to multiple taxes and levies imposed on local production. In an interview with Business Insider Africa, the Dangote Industries president said regulatory costs significantly inflate domestic cement prices.

Dangote said cement exported from Nigeria is cheaper because exporters are exempt from income tax, education and health levies, VAT and withholding tax, resulting in lower overall production costs. He noted that this allows Nigerian cement to compete with products from Turkey, Russia and China.

According to Dangote, the current system places the financial burden on local consumers, as domestic buyers pay for taxes not applied to exports. He added that while local manufacturing is important, it cannot by itself reduce prices without meaningful reforms to Nigeria’s tax and regulatory framework.