•Insists petrol should sell at N739/litre, warns against artificial scarcity

By Uche Usim

Nigerian industrialist, Aliko Dangote, has attributed the higher cost of locally produced cement to the country’s heavy taxes and regulatory burdens, highlighting how fiscal policies inflate domestic prices.

In an exclusive interview with Business Insider Africa, Dangote explained that cement exported from Nigeria often sells for less than what Nigerians pay at home, a disparity that has attracted public scrutiny.

Dangote said the gap exists because exported cement is exempt from multiple taxes and levies that domestic buyers must bear. “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 percent income tax, I’m not paying 2 percent education, I’m not paying 1 percent health, I’m not paying 7.5 percent VAT, and I’m not paying 10 percent withholding tax”, he said.

He explained that these exemptions enable Nigerian cement to compete effectively with international producers from countries such as Turkey, Russia, and China. However, the consequence of this system is that local consumers end up shouldering the burden of structural inefficiencies. Dangote noted that even robust domestic manufacturing alone cannot fully resolve high pricing for Nigerians.

Concerns over cement affordability in Nigeria have persisted among policymakers and the public. In February 2025, the Minister of Works, David Umahi, called on manufacturers to reduce prices to N7,000 per 50kg bag, citing stabilizing economic conditions, a strengthened naira, and lower petrol costs. At the time, cement prices had remained around N9,500, up from previous highs when the dollar had reached nearly N2,000, and Umahi warned that high prices could push contractors to revert to asphalt for road construction.

Meanwhile, Dangote Petroleum Refinery has commenced nationwide sales of Premium Motor Spirit (PMS) at a pump price of N739 per litre across all MRS Oil Nigeria Plc filling stations. With over 2,000 MRS stations nationwide, the new pricing is expected to be implemented across all outlets, ensuring that the benefits of this reduction reach consumers nationwide.

In its statement, the refinery commended marketers who have embraced the new pricing regime and urged others to follow suit in the interest of national economic recovery.

The refinery also issued a stern warning against attempts by unscrupulous operators to create artificial scarcity in response to the price reduction, calling on government agencies to act decisively.

“Any attempt to create artificial scarcity or manipulate supply to frustrate recent price reductions is unpatriotic and unacceptable. We urge regulatory authorities to remain vigilant and take firm action against such practices, especially during this critical festive period,” the statement added.

Consumers were advised to resist purchasing fuel at inflated prices when cheaper, high-quality alternatives are readily available.

“We encourage Nigerians to avoid buying PMS at excessively high prices when they can access locally refined fuel at N739 per litre from over 2,000 MRS stations nationwide. Report any MRS station selling above N739 per litre by calling 0800 123 5264,” the refinery said.

“We also call on other petrol station operators to patronize our products so that the benefits of this price reduction can be passed on to Nigerians across all outlets, ensuring broad-based relief and a more stable downstream market.”