Dangote Finally Explains Why His Cement Price Is Cheaper Outside Nigeria

• Aliko Dangote explained that cement sold in Nigeria is more expensive than exported cement due to multiple taxes and levies
• He listed the taxes to include income tax, education and health levies, VAT, and withholding tax
• Dangote group remains Nigeria's largest taxpayers, a position it has held for many years

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian billionaire industrialist Aliko Dangote has explained why cement produced by his company is often cheaper abroad than in Nigeria, attributing

According to Dangote, the price difference is due to Nigeria's high taxes and regulatory burdens.

He stated that these fiscal policies significantly inflate domestic prices, forcing local consumers to bear the cost of structural inefficiencies, Business Insider Africa reports.

Dangote explained.:

“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, 2% education levy, 1% health levy, 7.5% VAT, or 10% withholding tax."

The billionaire noted that these exemptions allow Nigerian cement to compete effectively with international producers from Turkey, Russia, and China. Domestic manufacturing alone, he said, cannot fully resolve high pricing for Nigerians.

Cement prices concern

Concerns over cement affordability have persisted among policymakers and the public. Cement in Nigeria currently sells for between N9,500 and N10,200 per 50kg bag.

In February 2025, Legit.ng reported that the Minister of Works, Sen. Engr. Nweze David Umahi, urged manufacturers to lower prices to N7,000 per 50kg bag, citing improved exchange rates and lower petrol prices.

At the time, cement prices were averaging N9,500, up from previous highs caused by currency depreciation.

Also, in February 2024, Musa Dangiwa, the Minister of Housing and Urban Development, warned that rising cement prices threatened housing delivery programs for low- and middle-income Nigerians, urging manufacturers to innovate rather than pass costs onto consumers.

Dangote refinery operation

Dangote also addressed criticisms of his Dangote Refinery, built to alleviate Nigeria’s fuel shortages.

Despite its potential to stabilise fuel supplies, create jobs, and reduce foreign exchange pressure, the refinery has faced opposition over concerns about market dominance and pricing.

Dangote said:

“Since when has Nigeria been having problems with fuel queues? Since 1972. Somebody has addressed this problem, and you’re calling the company names."

He added that instead of relying on imports to regulate prices, Nigeria should encourage more domestic investment in the energy sector, which would naturally balance market power and strengthen regulation.

Cement makers earnings

Earlier, Legit.ng reported that three cement producers listed on the Nigerian Exchange Limited (NGX), Dangote Cement Plc, BUA Cement Plc, and Lafarge Cement Plc have made a combined revenue of N677.34 billion in 2024

This represents an increase of 17.55% from the N576.18 billion reported in 2023.

Dangote Cement remains Nigeria’s most profitable cement company, reporting a profit of N503.2 billion for the full year 2024, a 10% increase from N455.6 billion in 2023.