Dangote explained that the price gap exists because cement exports are exempt from multiple taxes and levies that apply in Nigeria.
He noted that when examining his invoices, exported cement is cheaper than what is sold domestically, as the savings from not paying income tax, education and health levies, VAT, and withholding tax significantly reduce production costs.
These exemptions, he said, allow Nigerian cement to compete effectively with international producers from countries such as Turkey, Russia, and China.
“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.
Dangote emphasized that the consequence of this system is that domestic consumers end up shouldering the burden of structural inefficiencies.
He added that local manufacturing alone cannot fully resolve high pricing for Nigerians.
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