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Dangote Refinery Moves Into Plastics & Detergents, Targets Global Market

Adebisi Adewunmi by Adebisi Adewunmi
3 months ago
in Economy & Business
US-Iran War: FG Reopens Fuel Imports, Dangote Reels From FX Losses
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  • Dangote Refinery Expands into Petrochemicals

LAGOS, Nigeria – Nigeria’s push for industrial self-reliance just got a major boost as the Dangote Petroleum Refinery in Lekki prepares to move beyond fuel into high-value petrochemicals.

The Dangote Group has sealed a deal with Honeywell to deploy advanced Oleflex technology at the facility. This will enable large-scale output of propylene and linear alkylbenzene, key ingredients for plastics, packaging and household detergents.

NaijaChoice News reports that the refinery will produce an additional 750,000 metric tonnes of propylene yearly once the new units come on stream. It will also churn out 400,000 metric tonnes of linear alkylbenzene annually, making the Lekki LAB plant one of the biggest of its kind globally.

Industry watchers say the expansion signals a deliberate shift from pure refining to higher-margin chemical production. The move is expected to cut Nigeria’s heavy reliance on imported raw materials for manufacturing and packaging sectors.

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Aliko Dangote has consistently pushed for stronger local content in Nigeria’s industrial chain. The petrochemical push forms part of broader plans to position the country as a reliable supplier to both domestic and regional markets.

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The development comes as the Dangote empire strengthens its integrated model. Last week, shareholders of Dangote Sugar Refinery Plc approved a N500 billion rights issue to fund expansion and backward integration projects.

Analysts believe these steps will create thousands of direct and indirect jobs while conserving foreign exchange. Local plastic and detergent makers are already eyeing steady local supply to lower production costs.

The partnership with Honeywell also ties into wider African efforts to build home-grown manufacturing capacity. It reduces dependence on distant suppliers and supports stable prices for everyday consumer goods.

At full capacity, the Lekki complex is projected to rank among the world’s leading integrated refining and petrochemical hubs. Observers say this could reshape supply chains across West Africa.

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