Cement prices in Niger expected to see significant drop

Cement in Niger is expected to be sold at significantly lower prices following the signing of an order determining the special tax regime applicable to importing, producing and marketing CEM II 32.5 grey cement. The order was signed by Brigadier General Abdourahamane Tiani, president of the country's National Council for the Safeguarding of the Fatherland, on 14 October 2024 and includes a total exemption from the tax on financial activities (TAFI) on accrued interest not yet due on loans. Cement companies will also be exempt rom the value added tax (VAT) on all sources of energy intended for the operation of production facilities as well as from the real estate tax for legal entities (TIPM) and from the professional tax (TP).

These companies also benefit from exemption from customs duties and taxes, including value added tax (VAT), excluding the statistical fee (RS), the Community Solidarity Levy (PCS), the African Union Levy (PUA), on coal intended for the production of CEM II 32.5 grey cement, value added tax (VAT), excluding the Statistical Fee (RS), the Community Solidarity Levy (PCS), the African Union Levy (PUA) on the importation of cement packaging bags; and value added tax (VAT) on the sale and transport within the country of CEM II 32.5 grey cement intended for households.

As a result of the new regime, it is expected that the implementation will lead to a "very significant drop" in the price of CEM II 32.5 grey cement – of around 35 per cent compared to current prices. For example, in Niamey cement prices will fall to XOF55,000 (US$90.89/t). In Dosso cement will be sold at XOF56,000/t and in Maradi at XOF57,000/t. In Zinder a tonne of cement will cost XOF58,000, while in Diffa, Agadez and Tillabéri the price will be XOF59,000/t. Tahoua buyers will pay XOF51,000/t.