President of Dangote Group, Aliko Dangote, has attributed the higher cost of cement in Nigeria compared with export markets to the country’s heavy taxes and regulatory burdens.

Speaking on the price differences, Dangote explained that exporting allows the company to bypass numerous taxes that significantly raise domestic production costs.

“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 save a lot of money—I’m not paying 30% income tax, 2% education tax, 1% health tax, 7.5% VAT, or 10% withholding tax,” he said.

By avoiding these costs, Dangote noted, the company can price its cement competitively in international markets alongside producers from Turkey, Russia, and China.

“So when you reduce all these taxes, I can compete effectively with the international market,” he added.

Observers have often questioned why Dangote’s locally manufactured products are frequently cheaper abroad than in Nigeria. The company’s explanation underscores how Nigeria’s fiscal policies and tax framework make domestic sales more expensive than exports, highlighting structural challenges in the economy.