Dangote Refinery Starts Polypropylene Production in October, Reducing Nigeria's $268m Import

The Dangote Refinery is set to commence polypropylene production by the end of October 2024, which will reduce Nigeria's reliance on imported polypropylene—a vital material used in packaging, textiles, and automotive components. Aliko Dangote, Chairman of the Dangote Group, announced that as the refinery nears full operational capacity, it will meet the local demand for polypropylene, which previously required imports valued at around $267.7 million annually. This development is anticipated to provide substantial benefits to industries such as packaging, textiles, and automotive manufacturing, which have faced difficulties due to foreign exchange constraints and extended shipping times.

Dangote highlighted that the refinery will be fully equipped to supply the market, addressing the challenges faced by local manufacturers who have had to stockpile due to delays in importing the material. This shift is expected to cut import costs and improve economic stability by reducing Nigeria's dependence on foreign products. “From October, Nigeria will no longer import polypropylene, which used to amount to about a quarter of a million tons,” Dangote affirmed. “There will be no more imports of polypropylene.”

Currently, Nigerian manufacturers import significant quantities of polypropylene for various uses, including packaging, textiles, automotive parts, and medical equipment. According to several media report, the annual import value of polypropylene into Nigeria is about $267.7 million, with a peak of $407 million in 2022. The National Bureau of Statistics (NBS) reported that in the first quarter of this year, Nigeria imported polypropylene worth N99.6 billion, making it the 12th most imported product in the country.

Dangote assured that the refinery will meet the entire market demand. “We will satisfy the market 100 percent,” he said, noting that local industries struggling with foreign exchange issues and the complexities of shipping and clearing will benefit from a more reliable domestic supply. He also emphasized that Dangote Group, being a major user of polypropylene through its packaging division, will greatly benefit from this change. Saudi Arabia, South Africa, South Korea, China, and Vietnam were the primary suppliers of polypropylene to Nigeria in the first quarter of 2024, covering 90 percent of the country’s needs.

Polypropylene is a versatile plastic widely utilized in various packaging applications. Its flexibility, durability, and cost-effectiveness often make it a preferred choice over alternatives such as cellophane, metal, and paper. In its flexible form, polypropylene is used in the food, confectionery, tobacco, and clothing industries. When rigid, it is commonly found in products like caps, closures, pallets, crates, bottles, just-in-time storage solutions, and containers for items such as condiments, detergents, toiletries, and yogurt.