Why Dangote Cement Is Cheaper Outside Nigeria — Aliko Dangote Explains

Why Dangote Cement Is Cheaper Outside Nigeria — Aliko Dangote Explains
President of the Dangote Group, Alhaji Aliko Dangote, has explained why cement produced by his company sells at a cheaper price in other African countries than in Nigeria, despite being manufactured by the same company.
According to Africa’s richest man, the major reason lies in high taxes, multiple levies, and heavy regulatory burdens imposed on manufacturers in Nigeria.
High Cost of Doing Business in Nigeria
Dangote disclosed that cement producers in Nigeria face numerous taxes and regulatory charges from federal, state, and local government authorities. These costs, he said, significantly increase the final price paid by consumers.
“In some countries, we pay just one tax. In Nigeria, you pay several — at federal, state, and local levels. All these add up and affect the final price of cement,” Dangote said.
He noted that beyond taxation, manufacturers also grapple with expensive logistics, poor road infrastructure, and rising energy costs, all of which make production more costly in Nigeria than in neighbouring countries.
Energy and Infrastructure Challenges
Dangote explained that power supply remains a major challenge. Many factories rely heavily on alternative energy sources such as gas and diesel due to unstable electricity, pushing production costs higher.
In contrast, some African countries where Dangote Cement operates provide better energy support, tax incentives, and smoother regulatory processes, enabling manufacturers to sell at lower prices.
Regulatory Bottlenecks and Multiple Agencies
The billionaire industrialist also pointed to overlapping regulations and multiple government agencies imposing fees on the same business operations.
According to him, these regulatory bottlenecks discourage local manufacturing and make Nigerian-made products less competitive, even within the West African sub-region.
Call for Government Reforms
Dangote urged the Nigerian government to streamline taxes, reduce regulatory overlaps, and create a more business-friendly environment that supports local manufacturers.
He stressed that lowering the cost of doing business would not only reduce cement prices but also boost employment, attract more investments, and strengthen the nation’s economy.
Implications for Consumers
The high cost of cement has remained a major concern for Nigerians, especially in the housing and construction sectors. Industry watchers believe that addressing taxation and regulatory issues could lead to more affordable building materials and improved infrastructure development across the country.
As the debate continues, Dangote’s remarks have once again highlighted the urgent need for reforms aimed at making Nigeria a competitive manufacturing hub in Africa.