Nigerian billionaire industrialist, Aliko Dangote, has attributed the upper value of regionally produced cement to Nigeria’s excessive taxes and regulatory burden.
He made the comment throughout an unique interview with Enterprise Insider Africa, emphasizing how fiscal insurance policies inflate home costs.
The disparity has drawn public consideration, as cement exported from Nigeria usually sells for lower than what Nigerians pay at dwelling.
Dangote defined that the value hole exists as a result of cement exports are exempt from a number of taxes and levies that apply in Nigeria.
He famous that when analyzing his invoices, exported cement is cheaper than what’s offered domestically, because the financial savings from not paying earnings tax, training and well being levies, VAT, and withholding tax considerably scale back manufacturing prices.
These exemptions, he mentioned, permit Nigerian cement to compete successfully with worldwide producers from nations resembling Turkey, Russia, and China.
“If you have a look at my bill, the cement I export is cheaper than the one I’m promoting domestically, as a result of that’s how exports work.
“In export I’m saving some huge cash, I’m not paying 30% earnings tax, I’m not paying 2% training, I’m not paying 1% well being, I’m not paying 7.5% VAT, and I’m not paying 10% withholding tax,” he mentioned.
Dangote emphasised that the consequence of this method is that home shoppers find yourself shouldering the burden of structural inefficiencies.
He added that native manufacturing alone can not absolutely resolve excessive pricing for Nigerians.
Considerations over the excessive value of cement in Nigeria have endured amongst each policymakers and the general public.
In February 2025, the Minister of Works, Sen. Engr. Nweze David Umahi, urged producers to decrease costs to N7,000, citing improved {economic} circumstances. He famous that, on the time, the naira had stabilized at about N1,400 per greenback and petrol costs had dropped, creating an atmosphere conducive to decreasing cement prices.
He cautioned that rising cement costs threatened the Ministry’s housing supply applications, notably for low- and middle-income earners and susceptible populations.
Cement costs in Nigeria right now hover between N9,500 and N10,200 for a 50kg bag.
