The president of Dangote Group, Aliko Dangote, has said high taxes and regulatory charges in Nigeria are the main reason cement produced by his company is sold more cheaply abroad than at home.
Speaking on the price differences between locally sold and exported cement, Mr Dangote said exporting allows the company to avoid several taxes that significantly raise production costs within Nigeria.
Mr Dangote explained that cement sold outside the country is exempt from a range of charges, including corporate income tax, value-added tax and other statutory levies.
“When you look at my invoice, the cement I export is cheaper than the one I sell domestically because of how exports work,” he said. “On exports, I am not paying 30% income tax, 7.5% VAT, 10% withholding tax, or other levies such as education and health taxes.”
He said the removal of these costs enables Dangote Cement to compete more effectively in international markets against producers from countries such as Turkey, Russia and China.
“If you reduce all these taxes, I can afford to compete globally with the likes of Turkey, Russia and China,” he added.
Mr Dangote has long argued that local manufacturing is key to Nigeria’s economic self-reliance. However, the lower price of his products outside Nigeria has continued to raise questions among consumers and analysts.