The Dangote Oil Refinery has officially started producing polypropylene, a key raw material used in plastics and textiles. The facility, located in Lagos, is now distributing supplies, marking a major milestone in the refinery’s operations.
A Game-Changer for Nigeria’s Industry
Reports indicate that Dangote’s polypropylene production could shake up Nigeria’s domestic market. The refinery has the capacity to produce 830,000 metric tonnes of polypropylene annually, which is expected to meet the country’s demand of 250,000 metric tonnes per year. This means Nigeria could reduce its reliance on imports, saving foreign exchange and boosting local industries.
Impact on Market Dynamics
Industry sources say that the refinery had already begun offering polypropylene supplies as early as February, even before official production started. Experts predict that this new capacity could challenge the dominance of Indorama Eleme’s Port Harcourt facility, Nigeria’s main polypropylene producer, and reduce imports from the Middle East.
Africa’s Largest Polypropylene Producer
Once fully operational, the Dangote refinery will be Africa’s largest polypropylene production site, with two units capable of producing 500,000 and 330,000 metric tonnes per year. The petrochemical plant, located in Ibeju-Lekki, Lagos, is part of Dangote’s $2 billion investment in Nigeria’s industrial sector.
According to Devakumar Edwin, Dangote’s Group Executive Director, the plant will:
- Generate employment and increase tax revenue.
- Reduce Nigeria’s foreign exchange outflows.
- Strengthen local industries by ensuring a steady supply of raw materials.
- Increase Nigeria’s GDP by promoting value-added manufacturing.
A Boost for Local Manufacturing
Polypropylene is used in plastic packaging, furniture, textiles, pipes, and medical supplies. Nigeria currently imports most of these raw materials, but the Dangote refinery is set to change that. With local production now in place, manufacturers will find it easier to source materials, leading to more investments in the country’s plastic and textile industries.
Edwin emphasised that the availability of raw materials will encourage more businesses to set up manufacturing plants in Nigeria. This will not only save costs but also create thousands of jobs.
Petrochemical Expansion in Nigeria
Dangote’s refinery is already reshaping Nigeria’s oil and petrochemical industry. In the oil sector, its fuel production has reduced the need for imports and influenced local petrol pricing. With polypropylene now in the mix, the refinery is expected to extend its impact to manufacturing and export markets.
While the refinery aims to reach its full capacity of 650,000 barrels per day, this depends on crude oil availability. However, experts believe that its petrochemical arm will soon be running at full scale, making Nigeria a major player in Africa’s polypropylene market.
This development signals a new era for Nigeria’s industrial sector, with Dangote’s refinery driving self-sufficiency and economic growth.
