Africa’s richest man, Aliko Dangote, has explained why cement produced in Nigeria often costs more locally than abroad. Speaking in an interview with Business Insider Africa, Dangote blamed the disparity on Nigeria’s heavy tax and regulatory burden. He said export incentives slash costs, leaving local buyers to pay more.
Dangote noted that cement shipped out of Nigeria is exempt from several taxes and statutory charges imposed on domestic sales. As a result, the same product sells cheaper overseas than within Nigeria, despite being produced locally.
According to him, export invoices clearly show the difference. Cement sold abroad avoids multiple layers of taxation, including corporate income tax, education and health levies, value-added tax, and withholding tax. Those exemptions significantly lower production and final selling costs.
“When you look at my invoice, the cement I export is cheaper than the one I sell domestically,” Dangote said, explaining that exporters save substantial sums by not paying a 30% income tax, 7.5% VAT, and other statutory charges.
He added that the tax relief allows Nigerian cement to compete globally with producers from countries such as Turkey, Russia, and China. Without those exemptions, he said, Nigerian exports would struggle to remain competitive in international markets.
Dangote stressed that the unintended consequence is that Nigerian consumers bear the cost of structural inefficiencies. He argued that simply increasing local production cannot automatically translate into cheaper prices if fiscal pressures remain unchanged.
The issue has fueled public debate, as Nigerians question why locally made cement remains expensive despite domestic manufacturing capacity. Calls for price reductions have intensified amid easing macroeconomic pressures.
In February 2025, Minister of Works, Senator Dave Umahi, publicly urged cement manufacturers to reduce prices to about ₦7,000 per bag. He pointed to a stronger naira, which had stabilized around ₦1,400 to the dollar, and falling petrol prices as reasons costs should come down.
Umahi criticized manufacturers for maintaining prices near ₦9,500 after raising them when the naira approached ₦2,000 to the dollar. He warned that high cement prices threaten major infrastructure projects, including reinforced concrete road construction, with some contractors considering a return to asphalt.
The concern dates back further. In February 2024, Housing and Urban Development Minister Musa Dangiwa accused cement producers of exploiting exchange-rate volatility to justify sharp increases. Prices had jumped from about ₦5,500 to nearly ₦10,000 per bag, putting pressure on housing programs for low- and middle-income Nigerians.
Despite these interventions, cement prices today still range between ₦9,500 and ₦10,200 for a 50kg bag, keeping affordability firmly in the national spotlight.
