Aliko Dangote, Africa’s richest man and president of Dangote Industries Limited, has attributed the high cost of locally produced cement to Nigeria’s tax structure and regulatory burden in the country.
Speaking in an interview with Business Insider Africa, Dangote said cement exported from Nigeria is exempt from several levies, including company income tax, education and health taxes, VAT, and withholding tax.
These exemptions reduce costs and make Nigerian cement competitive with producers from countries like Turkey and China.
According to Dangote, when he checks his invoices, cement sold abroad is cheaper than what Nigerians buy locally because domestic buyers bear these extra charges.
“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.
He added that until Nigeria fixes these structural and policy issues, local production alone will not be enough to bring prices down.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
