Niger Revokes Tax Incentives for Dangote Cement and KAO Ciment Over Unfulfilled Investment Commitments

The Nigerien government has withdrawn tax and customs benefits previously granted to Dangote Cement Niger SA and KAO Ciment SAS, citing the companies’ failure to meet agreed-upon investment and employment obligations.

The decision was made during a Council of Ministers meeting on Friday, chaired by President Abdourahamane Tchiani.

Both companies had received approvals under Niger’s Investment Code, Dangote Cement in 2018 and KAO Ciment in 2020, to undertake industrial projects in the Tahoua region.

In exchange for tax incentives, the firms committed to investing 179 billion CFA francs and 159 billion CFA francs, respectively, and to collectively creating over 1,000 direct jobs. According to reports, these commitments were to be monitored through semi-annual reports, as stipulated by Law No. 2014-09 of April 16, 2014.

However, after more than seven years for Dangote Cement and five years for KAO Ciment, the government reports that neither company has fulfilled its obligations. Despite formal notices and deadlines to address the shortcomings, authorities observed a lack of tangible progress in investment and job creation.

Consequently, the government has decided to revoke the companies’ licences and recover all undue benefits received, following Article 22 of the Investment Code, which allows for such sanctions in cases of serious non-compliance.

This move by the government follows efforts to tighten regulations and ensure compliance among multinational corporations operating within the country.

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