Nigerian manufacturers are optimistic about the economic benefits of Dangote Petroleum Refinery & Petrochemicals’ new polypropylene production.
The Manufacturers Association of Nigeria (MAN) believes this initiative will significantly reduce the country’s reliance on imported raw materials, particularly in the textile industry.
With local production now in place, Nigeria is expected to save approximately $267 million annually in import costs.
Segun Ajayi-Kadir, Director-General of MAN, highlighted the challenges that have plagued Nigeria’s textile industry, which once employed over 25,000 workers in the northern region.
He attributed the industry’s decline to the lack of local polypropylene production and the scarcity of foreign exchange needed for imports, which forced many companies to shut down.
Polypropylene, a versatile thermoplastic, plays a crucial role in various industries, including packaging, textiles, automotive, healthcare, and electronics.
Its durability, chemical resistance, and lightweight nature make it essential for producing plastic containers, food packaging films, non-woven fabrics, car bumpers, medical devices, and insulation materials.
Dangote’s $2 billion petrochemical plant in Ibeju-Lekki, Lagos, is designed to produce 77 grades of polypropylene.
With a capacity of 900,000 metric tonnes per year and an expected turnover of $1.2 billion, the plant aims to meet the growing demand in plastic processing industries across Africa and globally.
This development is expected to boost investment in downstream industries, create jobs, increase tax revenues, reduce foreign exchange outflow, and contribute significantly to Nigeria’s GDP growth.
Ajayi-Kadir emphasized that local polypropylene production will reduce manufacturers’ reliance on imports, lowering costs and improving efficiency.
He urged the federal government and relevant stakeholders to support this initiative through incentives to attract further investment into the sector and enhance manufacturing’s contribution to the country’s GDP.
In summary, Dangote’s venture into polypropylene production is set to transform Nigeria’s manufacturing sector, particularly the textile industry, by reducing import dependence, strengthening the local economy, creating jobs, and driving industrial growth.
