₦airaland Forum

Why Dangote Cement is cheaper outside Nigeria
Dangote has openly said that the price differential between his exporting cement and what Nigerians pay domestically is primarily caused by Nigeria's high tax and regulatory burden.

During a press conference with members of the press on Monday, exporting permits his company to avoid a variety of taxes that would dramatically increase production expenses at home.

“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.”

By eliminating these costs, the Nigerian billionaire noted that he would be able to price Nigerian cement competitively in global markets against producers from Turkey, Russia, and China.
Source: Business Insider Africa

Wow. Same thing was said of petrol that from the 799 naira per litre petrol is sold, only 380 naira or so goes to his firm. That the balance goes to the regulator charges. Our govt truly is a burden on us

The same tax wey he dey pay cover every cement produced. All can be sold the same price,,,, taxation is based on profit not activity .
It is lower in other countries because dangote does not have monopoly of market so if price is high they will import other brands

So many agency and taxes that are duplicates.

Only your profit is taxed. Monopoly is the reason. You either don't have monopoly in those countries or you do but you know the country will change it for you if you mess up.

the frustrating reality is that these taxes are ultimately borne by Nigerian consumers mostly the poor that buys in bit, who face a double burden first through embedded taxes inflating domestic prices, as Dangote himself admits, and again through personal income tax (starting 2026) , creating a punishing cycle of taxation that severely erodes purchasing power.


You buy a product. Already Taxed. 30% + 7.5VAT. =37.5.% addition

You go still pay personal income tax(2026) again. 30%

That to to say the government is taking 37.5% +30% = 67.5% [/b]from every [b]100% you have. Leaving you with. 32.5%

This is the same story he will come to tell us later if he is allowed to monopolize the petroleum industry and he increases the cost of his petrol.

zeuss:
The same tax wey he dey pay cover every cement produced. All can be sold the same price,,,, taxation is based on profit not activity .
It is lower in other countries because dangote does not have monopoly of market so if price is high they will import other brands

common sense will never be common for some people

immortalcrown:
Only your profit is taxed. Monopoly is the reason. You either don't have monopoly in those countries or you do but you know the country will change it for you if you mess up.

The biggest problem of Nigeria:
Citizens are ever ready to defend the government oppressing them suffering and smiling while qouting imaginary monopoly to comfort themselves of there hardships

pdppower:
This is the same story he will come to tell us later if he is allowed to monopolize the petroleum industry and he increases the cost of his petrol.

Just take a look how a citizen oppressed by government is defending the same government

Which is actually true when you look at it logically.

It will not be true to those who are emotional about reality

pdppower:
This is the same story he will come to tell us later if he is allowed to monopolize the petroleum industry and he increases the cost of his petrol.

Nobody is stopping you from building your own refinery to compete with him

What do you mean by "allow"?

Exactly!

This is a perfect answer to those ignorantly insinuating that high taxes has nothing to do with cost push inflation

Tax is one of the factors of production and manufacturer must factor it into the prices of goods.

Now the Tax law they are hailing is fraught with extra-legislative padding.

I guess they don't know what the new tax law is brewing for us.

Now, i challenge them to argue blindly with an industrialist.

zeuss:
The same tax wey he dey pay cover every cement produced. All can be sold the same price,,,, taxation is based on profit not activity .
It is lower in other countries because dangote does not have monopoly of market so if price is high they will import other brands

Will you in all honesty say you have any practical or theoretical right to debunk the assertion of Dangote?

This man also told you that half the cost of a litre of Petrol we buy goes to the regulator and you kept quiet.

Our government is killing us and not your perceived monopoly

lilsmart:
the frustrating reality is that these taxes are ultimately borne by Nigerian consumers mostly the poor that buys in bit, who face a double burden first through embedded taxes inflating domestic prices, as Dangote himself admits, and again through personal income tax (starting 2026) , creating a punishing cycle of taxation that severely erodes purchasing power.


You buy a product. Already Taxed. 30% + 7.5VAT. =37.5.% addition

You go still pay personal income tax(2026) again. 30%

That to to say the government is taking 37.5% +30% = 67.5% [/b]from every [b]100% you have. Leaving you with. 32.5%

Stockholm syndrome.

And some people are shouting themselves hoarse that taxes especially company taxes does not cause inflation.

Gboss247:
common sense will never be common for some people

well said

Gboss247:
The biggest problem of Nigeria:
Citizens are ever ready to defend the government oppressing them suffering and smiling while qouting imaginary monopoly to comfort themselves of there hardships

Tell them o.....

matify83:
Stockholm syndrome.

And some people are shouting themselves hoarse that taxes especially company taxes does not cause inflation.

Our sense of entitlement makes us think Dangote should absorb government tax and not pass it on to us the consumers.

In fact, Dangote must just give us his produce for free because we are entitled to it for reasons I can't yet fully comprehend!

Gboss247:
The biggest problem of Nigeria:
Citizens are ever ready to defend the government oppressing them suffering and smiling while qouting imaginary monopoly to comfort themselves of there hardships

How does my comment defend the government that gives Dangote the monopoly? Examine your br"in.

budaatum:
Our sense of entitlement makes us think Dangote should absorb government tax and not pass it on to us the consumers.

In fact, Dangote must just give us his produce for free because we are entitled to it for reasons I can't yet fully comprehend!

Wow wow wow!

That was a powerful quote from Adam Smith's wealth of Nations.

Thanks for sharing

matify83:
Wow wow wow!

That was a powerful quote from Adam Smith's wealth of Nations.

Thanks for sharing

I feel you might appreciate the book even more, so here's a condensed free copy.

https://www.adamsmith.org/the-wealth-of-nations

His original is easily available too if you are inclined.

budaatum:
I feel you might appreciate the book even more, so here's a condensed free copy.

https://www.adamsmith.org/the-wealth-of-nations

His original is easily available too if you are inclined.

Thanks man!

I have listened to the audio book but it is not like when you have the real thing in your hands or soft copy.

PDF downloaded.


Thanks

Dangote has not really been altruistic in his business dealings
Its usually greedy
Imagine producing cement in kogi but making it cheaper in kano his home state
Producing in Nigeria but making it cheaper abroad
Distributing his petroleum through his cousin Dantata who own MRS
Fighting Ibeto out of cement in order to establish an almost monopoly
Fighting BUA from joining cement and pasta flour/pasta business. BUA wrote a whole article full newspaper page about the ills of Dangote
He technically stole the ports belonging to his late uncle Dantata while he was bed ridden from an accident
There’s more

We don’t want a monopoly
Allow others to compete and give Nigerians a fair price
When he was getting cheap and discounted dollars and investments from NNPC he accepted it
Now give us cheaper products

Hmmm

budaatum:
I feel you might appreciate the book even more, so here's a condensed free copy.

https://www.adamsmith.org/the-wealth-of-nations

His original is easily available too if you are inclined.

Ruke1991:
Wow. Same thing was said of petrol that from the 799 naira per litre petrol is sold, only 380 naira or so goes to his firm. That the balance goes to the regulator charges. Our govt truly is a burden on us

Let Dangote provide the figures. I have eveey reason to believe he is not being honest and truthful. It is the humongous gains he makes it Nigerian that largely contribute to his wealth. Cement could be sold for quite lower than that.

Benin Republic sells cement cheaper than it is sold in Nigeria, despite our reserve of natural resources and internal production.
We might as well open our borders to cement importation to help the economy, since the federal government wants to kill everyone with taxes.

This government is now becoming like the Rehoboam govt.

MyExpression:
Benin Republic sells cement cheaper than it is sold in Nigeria, despite our reserve of natural resources and internal production.
We might as well open our borders to cement importation to help the economy, since the federal government wants to kill everyone with taxes.

This government is now becoming like the Rehoboam govt.

Just take a look at how a suffering citizen is stylishly defending an oppressing government