Dangote Refinery’s Polypropylene Set to Reshape Market

The Dangote Oil Refinery has begun operations at its polypropylene facility in Lagos, marking a key milestone in its commissioning process, which started in January 2024.

According to S&P Global, the 830,000 metric tonnes per year (mt/yr) facility is already disrupting the domestic market, with supplies being distributed in 25kg (55lb) bags. Industry sources report that Dangote Group began offering polypropylene as early as February, aiming to meet Nigeria’s annual demand of 250,000 mt.

Once fully operational, the facility will be Africa’s largest polypropylene producer, with two units capable of 500,000 mt/yr and 330,000 mt/yr, respectively. This could significantly challenge Indorama Eleme’s existing market share and reduce reliance on Middle Eastern imports.

Meanwhile, in the oil sector, Dangote’s refinery has already undercut local producers, forcing price adjustments in Nigeria’s gasoline market and reshaping traditional trade routes that once brought European oil products into West Africa. While the refinery targets full capacity of 650,000 barrels per day by March, this depends on crude availability.

Dangote’s US$2 billion petrochemical complex, located in Ibeju-Lekki, is set to produce 77 high-performance grades of polypropylene. With an estimated US$1.2 billion turnover, it aims to support Africa’s plastic processing industry while reducing foreign exchange outflows and boosting employment.

“Our petrochemical plant, the largest in Africa, will produce 900,000 tonnes of polypropylene annually,” said Devakumar Edwin, an executive at Dangote Industries. “By providing locally sourced raw materials, we expect increased investments in downstream industries, strengthening Nigeria’s economy.”

Polypropylene, derived from propylene gas, is widely used in plastic packaging, textiles, piping, medical applications, and more. The Dangote facility is poised to transform Nigeria’s petrochemical landscape and expand its footprint beyond Africa.