Dangote finally explains why his cement is cheaper outside Nigeria

Aliko Dangote is the richest man in Africa

Africa’s richest man, Aliko Dangote, has explained that the price difference between his exported cement and what Nigerians pay domestically is primarily due to Nigeria’s high taxes and regulatory burden.

Speaking at a press conference, Dangote explained that exporting allows his company to bypass a range of taxes that would otherwise drive up production costs domestically.

“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.

By eliminating these costs, Aliko Dangote noted that he would be able to price Nigerian cement competitively in global markets against producers from Turkey, Russia, and China.

Nigeria’s fiscal framework makes it cheaper to sell locally produced items overseas than at home, reflecting deeper structural flaws in the economy.

“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 stated.

Dangote reveals what his prayer for his worst enemy is

He also said Nigerian consumers bear the cost of high taxes, various levies, and regulatory inefficiency.

While local production is sometimes marketed as a remedy to high pricing, Dangote’s experience demonstrates how policy decisions can undercut that goal.

Fuel queues have been a frequent aspect of Nigerian life since the early 1970s. Dangote claims that the refinery immediately addresses this past failure.

Despite its potential to stabilize fuel supplies, relieve foreign exchange pressure, and provide thousands of jobs, the refinery has faced opposition from a variety of sources.

Critics are concerned about market dominance, pricing power, and the concentration of such a valuable national asset in private hands.

Others contend that gasoline costs have not plummeted as swiftly or severely as anticipated.

“People are always trying to look at the negative, when you look at it, since when has Nigeria been having problems with fuel queues? Since 1972, somebody has addressed this problem, and you’re calling the company that addressed this issue names,” he added.

SP/EB

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