Why Dangote Cement Is Cheaper Outside Nigeria.

President of Dangote Group, Aliko Dangote, has explained that the higher price of cement in Nigeria is largely due to multiple taxes and regulatory obligations, making locally sold cement more expensive than what is exported.

He said the cost difference exists because exporting allows his company to bypass several charges that substantially increase production expenses within the country.

“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.”

Dangote explained that avoiding these financial burdens makes it possible for Nigerian cement to compete favourably in the international market with manufacturers from Turkey, Russia and China.

“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,” he said.

The industrialist has consistently advocated local production as a strategy for economic independence. Despite this, many Nigerians continue to question why products made locally by Dangote are often sold cheaper abroad than within Nigeria. According to observers, this situation reflects how Nigeria’s tax and regulatory system makes exporting local products more cost-effective than selling them domestically, exposing deeper structural challenges in the economy.