Dangote’s businesses are a big deal in Nigeria. They’re seen as symbols of Nigeria’s industry, with interests in cement, sugar, and oil refining. For years, people have wondered why his cement is often cheaper in other countries than in Nigeria. His new Dangote Refinery, meant to solve Nigeria’s fuel problems, is also getting pushback from the people it aims to help.
From cement to sugar and now oil, Dangote has focused on making products locally to help the economy. But people keep asking two things: why his products cost more at home than when exported, and why there is so much noise about his refinery.
Dangote says the price difference is due to high taxes and regulations in Nigeria. He said at a press event on Monday that exporting lets his company skip local fees that raise prices.
If you look at the bill, the cement I sell overseas is cheaper than what I sell here because that’s how it works. I save cash when I export. I don’t pay income tax, education tax, health tax, VAT, or withholding tax, Dangote said.
By not paying those fees, Dangote can sell Nigerian cement at competitive prices worldwide, competing with companies in Turkey, Russia, and China.
The billionaire pointed out that Nigeria’s tax system makes it cheaper to sell products made here overseas than at home. This highlights problems with how the economy is set up.
“So if you cut those taxes, I can compete with the international market, with the guys in Turkey, Russia, and China,” he said.
Nigerian customers end up paying for high taxes and complicated rules. This makes it harder for policies to make locally made products more affordable.
Pushback on the Dangote Refinery
Those same issues are now appearing with the Dangote Refinery, which is supposed to be the biggest in Africa and fix Nigeria’s fuel shortage. People have waited in gas lines for ages, and Dangote says his refinery will solve that.
Even though it could help keep fuel prices steady, reduce pressure on currency exchange, and create jobs, the refinery is getting criticism. People are worried about one company controlling the market and prices and having something so important in private hands.
Some people complain that fuel prices haven’t dropped as much as expected. Dangote said he is tackling a problem that has existed for decades.
People keep looking at the bad stuff. Nigeria has had trouble with gas lines since 1972. Someone fixed it, and you’re badmouthing the company that did it, he said.
He also pointed out that it is important to stop relying on imports to keep local fuel prices steady. He said Nigeria needs to invest more in its own energy industry.
> You need to get more people to invest. If you have many investors, you can control how much of the market each investor has. But even if you do control it, don’t use imports to keep local production in check; you’re creating jobs somewhere else, Dangote said.
The Big Picture: Problems with the System
Dangote’s words suggest the problems are not just with the companies that make products, but with Nigeria’s economy as a whole. High business costs, complex rules, and unstable policies make it harder for local companies to compete. Unless these problems are fixed, the situation of cheaper exports and controversial solutions at home will likely continue.
