The Manufacturers Association of Nigeria (MAN) has emphasized that the production of polypropylene by Dangote Petroleum Refinery & Petrochemicals will significantly transform Nigeria’s textile industry while reducing the country’s dependency on imports. This move is expected to save Nigeria approximately $267 million in foreign exchange spent on importing polypropylene.
Polypropylene Deficit Hindered Textile Industry Growth
In a recent interview on the Channels Business Incorporated Programme, Segun Kadir-Ajayi, Director-General of MAN, highlighted the struggles of Nigeria’s textile industry, which once thrived with over 25,000 workers, particularly in the northern region. The lack of locally produced polypropylene and scarcity of foreign exchange for imports forced many textile companies to shut down, further weakening the manufacturing sector.
Dangote Refinery’s Contribution to Industrial Growth
Nigeria currently imports nearly 90% of its annual polypropylene needs, which totals about 250,000 metric tonnes per year. With the launch of Dangote’s polypropylene production, Nigeria is poised to not only meet local demand but also become a net exporter, generating much-needed foreign exchange.
“For us in the manufacturing sector, this is a significant milestone. The 250,000 metric tonnes national demand will now be covered, reducing reliance on imports,” Kadir-Ajayi stated. “This development will positively impact the textile, plastic, and furniture industries, saving Nigeria $267 million in import costs annually.”
Dangote Petrochemical Plant: Key to Industrial Advancement
The $2 billion Dangote Petrochemical Plant, located in Ibeju-Lekki, Lagos, is engineered to produce 77 grades of polypropylene, boasting a capacity of 900,000 metric tonnes per year and an annual revenue projection of $1.2 billion. This initiative will:
- Boost investments in downstream industries
- Create job opportunities across multiple sectors
- Enhance tax revenue generation
- Reduce forex dependency, strengthening Nigeria’s economy
- Support GDP growth through local manufacturing expansion
For more insights on how polypropylene production is shaping Nigeria’s industrial sector, visit The World Bank’s Industrialization Report.
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