Nigerian billionaire industrialist, Aliko Dangote, has attributed the higher cost of locally produced cement to Nigeria’s high taxes and regulatory burden.
He made the remark during an exclusive interview with Business Insider Africa, emphasizing how fiscal policies inflate domestic prices.
The disparity has drawn public attention, as cement exported from Nigeria often sells for less than what Nigerians pay at home.
Dangote explained that the price gap exists because cement exports are exempt from multiple taxes and levies that apply in Nigeria.
He noted that when examining his invoices, exported cement is cheaper than what is sold domestically, as the savings from not paying income tax, education and health levies, VAT, and withholding tax significantly reduce production costs.
These exemptions, he said, allow Nigerian cement to compete effectively with international producers from countries such as Turkey, Russia, and China.
“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,” he said.
Dangote emphasized that the consequence of this system is that domestic consumers end up shouldering the burden of structural inefficiencies.
He added that local manufacturing alone cannot fully resolve high pricing for Nigerians.
Concerns over the high cost of cement in Nigeria have persisted among both policymakers and the public.
In February 2025, the Minister of Works, Sen. Engr. Nweze David Umahi, urged manufacturers to lower prices to N7,000, citing improved economic conditions. He noted that, at the time, the naira had stabilized at about N1,400 per dollar and petrol prices had dropped, creating an environment conducive to reducing cement costs.
He cautioned that rising cement prices threatened the Ministry’s housing delivery programs, particularly for low- and middle-income earners and vulnerable populations.
Cement prices in Nigeria today hover between N9,500 and N10,200 for a 50kg bag.