Why Dangote Cement is Cheaper Outside Nigeria – Dangote 

For years, many Nigerians have asked the same question over and over again, why is Dangote Cement cheaper outside Nigeria than at home? 

Now, Aliko Dangote, President of Dangote Group, has given a clear and direct explanation and it has everything to do with taxes and regulations in Nigeria.

Taxes make local cement more expensive

According to Dangote, cement produced and sold within Nigeria carries heavy tax burdens that do not apply when the same product is exported. These extra costs, he said, push up the final price Nigerians pay.

When Dangote Cement is sold locally, the company must pay several taxes and statutory charges. These include company income tax, education tax, health-related levies, value-added tax, and withholding tax. Combined, these charges significantly increase production and selling costs.

In contrast, exported cement avoids most of these payments. Once these taxes are removed, the cost of producing and selling cement drops sharply.

Why exported cement is cheaper

Dangote explained that exporting cement allows his company to save a large amount of money. Since export products are exempt from many local taxes, the company can price its cement much lower outside Nigeria.

This cost advantage makes it possible for Dangote Cement to compete globally with manufacturers from countries like Turkey, Russia, and China. 

Without these tax exemptions, competing in the international market would be almost impossible.

In simple terms, cement sold abroad is cheaper because it carries fewer government charges than cement sold within Nigeria.

Competing globally, struggling locally

Dangote noted that once these taxes are removed, Nigerian cement becomes competitive on the global stage. 

However, within Nigeria, the same product struggles to stay affordable because of the heavy fiscal pressure placed on local manufacturers.

This situation creates a strange reality where it is cheaper to sell Nigerian-made products outside the country than to Nigerians themselves.

What this says about Nigeria’s economy

Dangote’s explanation points to a deeper problem in Nigeria’s economic structure. The country’s tax system and regulatory environment make local production expensive, even when raw materials are sourced locally.

For a businessman who strongly supports local manufacturing, this remains a major concern. Dangote has repeatedly argued that Nigeria cannot achieve economic self-sufficiency if manufacturers are overburdened with taxes and levies.

Many observers believe this issue goes beyond cement and affects several locally produced goods. Until these structural challenges are addressed, Nigerian consumers may continue to pay more for products made in their own country.