Why Dangote Cement Costs More in Nigeria: The “Billionaire’s Invoice” Explained
The high cost of cement in Nigeria has long been a point of frustration for builders and homeowners.1 In an exclusive interview with Business Insider Africa on December 21, 2025, Aliko Dangote addressed this disparity, revealing that the “secret” to cheaper Nigerian cement abroad lies not in production, but in the fiscal burden at home.2
According to Dangote, when he exports cement, he is effectively operating in a “tax-free” world, allowing him to compete with global giants from Turkey, Russia, and China—a luxury he does not have within Nigeria.3
Table of Contents
The Tax “Invoice”: Domestic vs. Export Costs
Why Exports Are Cheaper (The Competitiveness Factor)
The Government’s N7,000 Target: A Brief History
Current 2025 Market Prices: Regional Breakdown
Impact: What High Prices Mean for Nigeria’s Infrastructure
1. The Tax “Invoice”: Domestic vs. Export Costs
Aliko Dangote explicitly noted that when he looks at his company’s invoices, the domestic price is heavily inflated by five major taxes and levies that disappear the moment the cement crosses Nigeria’s borders.4
| Tax / Levy Type | Domestic Rate | Export Status |
| Corporate Income Tax (CIT) | 30% | Exempt |
| Education Levy | 2% | Exempt |
| Health Levy | 1% | Exempt |
| Value Added Tax (VAT) | 7.5% | Exempt |
| Withholding Tax (WHT) | 10% | Exempt |
“In export, I’m saving a lot of money… So when you reduce all these taxes, I can afford to go and compete with the international market.” — Aliko Dangote.
2. Why Exports Are Cheaper (The Competitiveness Factor)
The Nigerian government provides these exemptions to encourage foreign exchange (FX) inflows. By removing the 50%+ cumulative tax burden on exports, Nigerian cement becomes affordable enough to compete in West African and global markets.5
However, Dangote pointed out that this creates a paradox: Nigerian consumers end up subsidizing the structural inefficiencies of the country’s tax system, paying significantly more than the buyers in the countries where the cement is exported.6
3. The Government’s N7,000 Target: A Brief History
The struggle between the government and manufacturers has been ongoing for years.
February 2024: Housing Minister Musa Dangiwa criticized manufacturers for hiking prices to ₦10,000 during FX volatility.7
February 2025: Works Minister David Umahi urged a reduction to ₦7,000, arguing that the Naira’s stabilization at ₦1,400/$1 and lower fuel costs made high prices unjustifiable.8
The Manufacturers’ Stance: Producers maintain that gas costs, bad roads, and high import duties on spare parts make the ₦7,000 target difficult to sustain without government intervention.
4. Current 2025 Market Prices: Regional Breakdown
As of December 2025, cement prices have stabilized slightly but remain far above the government’s ₦7,000 dream. Prices fluctuate based on logistics and proximity to plants.
| Region | Price Range (per 50kg bag) |
| Lagos / Southwest | ₦9,500 – ₦9,800 |
| Abuja / North Central | ₦9,800 – ₦10,200 |
| Kano / North | ₦10,100 – ₦10,400 |
| Port Harcourt / South-South | ₦9,600 – ₦10,000 |
5. Impact: What High Prices Mean for Nigeria’s Infrastructure
High cement prices are more than just a headache for private builders; they threaten national security and development:
Road Construction: The Federal Ministry of Works is pushing for concrete roads (CRCP) for durability, but high cement costs are making contractors consider a return to asphalt.
Housing Crisis: Rising costs are stalling low-to-middle-income housing projects, further widening Nigeria’s housing deficit.10
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