“Why Cement Is Cheaper Outside Nigeria” – Aliko Dangote

Nigerians haven’t stopped looking at the billionaire businessman, Aliko Dangote, and the Dangote Group of Companies with a side eye, despite the crash in fuel prices. Why? Why is Dangote Group not crashing prices on sugar, cement, and all other products the multibillion-dollar industry has a stake in? Dangote Group not only has a leg in these areas but also has a near-monopoly in them.

Read Also: What Is Fuel Subsidy?

This time, it’s not enough to reduce the price from N850 to N750, as even though this big move has many Nigerians glued in, the vast majority still need more answers. Does Dangote group have the people in mind, or is this just a power play against various groups, such as NMDPRA and other regulatory bodies, that have been giving them a hard time?

Aliko Dangote Explains Why Dangote Cement is cheaper outside Nigeria

President of Dangote Group, Aliko Dangote, chatted with the media and somewhat gave insight into why Dangote Cement is cheaper outside Nigeria, in countries like Cameroon, Congo, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania, and Zambia. According to the businessman, “it’s how exports work.” Aliko Dangote went on to explain how high taxes and manufacturing burdens in Nigeria affect the cost of cement produced by his company, which is more expensive in the country than abroad:

“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.”

Explaining the price differential between exported cement, he said exporting permits his company to avoid a variety of taxes that would drastically increase production expenses at home. By eliminating these costs, the businessman also emphasized that he would be able to price Nigerian cement competitively in global markets against producers from Turkey, Russia, and China:

“So when you reduce all these taxes, I can afford to go and compete with the international market, with the likes of Turkey, Russia, and China,” he stated.