Dangote Refinery’s Polypropylene Production Set to Reshape Market
The Dangote Oil Refinery has officially commenced polypropylene production at its Lagos facility, marking a significant milestone in the refinery’s expansion. The polypropylene plant, a key part of Dangote’s petrochemical complex, is set to be unveiled soon, with supplies already entering the market.
According to S&P Global, the 830,000 metric tonnes per year polypropylene unit was one of the final steps in the refinery’s commissioning process, which began in January 2024. Industry sources have reported that production has started, with polypropylene being distributed in 25kg bags, already impacting the domestic market.
Reports indicate that Dangote Group began offering polypropylene supplies as early as February, with the company aiming to meet Nigeria’s annual demand of 250,000 metric tonnes. Once fully operational, the facility will become Africa’s largest polypropylene producer, with two units boasting capacities of 500,000 mt/year and 330,000 mt/year.
The entry of Dangote’s polypropylene into the market is expected to reshape Nigeria’s polymer industry, which has relied heavily on imports from the Middle East and production from Indorama Eleme’s Port Harcourt refinery. Experts predict that Dangote’s large-scale production could swiftly capture a significant market share.
Beyond petrochemicals, the Dangote refinery has already disrupted the Nigerian oil market, offering products at lower prices than local competitors. The refinery has significantly reduced Nigeria’s reliance on fuel imports, even as NNPC’s Port Harcourt and Warri refineries struggle with operational challenges.
In the petrochemical sector, the $2 billion Dangote plant in Ibeju-Lekki is designed to produce 77 high-performance polypropylene grades. With an annual production capacity of 900,000 tonnes, the facility is expected to boost local manufacturing, create jobs, reduce foreign exchange dependence, and contribute to Nigeria’s economic growth.
Group Executive Director of Dangote Industries, Devakumar Edwin, highlighted that the plant will drive investment in Nigeria’s downstream sector by making raw materials readily available. “Currently, raw materials for polypropylene are imported, and manufacturers face forex shortages. The Dangote Petrochemical plant will solve this problem, encouraging more investment in the economy,” he stated.
Polypropylene, a petroleum-based synthetic polymer, is widely used in industries ranging from packaging and textiles to automotive and medical applications. With Dangote’s entry into production, Nigeria is set to become a major player in the global polypropylene market.
