The Manufacturers Association of Nigeria (MAN) has announced that the production of polypropylene by Dangote Petroleum Refinery & Petrochemicals will provide a major boost to Nigeria’s struggling textile industry while saving the country $267 million annually in import costs.
Speaking on Channels Business Incorporated, Segun Kadir-Ajayi, Director-General of MAN, emphasized that the textile industry—once a thriving sector employing over 25,000 workers in northern Nigeria—has suffered due to the absence of local polypropylene production and foreign exchange shortages needed for imports.
With Dangote Refinery now producing polypropylene, Nigeria, which currently imports 90% of its annual demand (250,000 metric tonnes), is set to become a net exporter, generating much-needed foreign exchange and strengthening the economy.
“For the manufacturing sector, this is a game-changer. It covers our entire national demand, benefiting industries like textiles, plastics, and furniture. The $267 million we currently spend on imports can now be saved, encouraging more investment in local production,” Kadir-Ajayi stated.
Boost for Local Manufacturing and Economic Growth
Kadir-Ajayi stressed that domestic polypropylene production will significantly reduce manufacturing costs, making industries more competitive and efficient.
“Globally, the textile industry depends on the petrochemical sector. Now that we have local production, manufacturers will no longer struggle with forex shortages. This is fantastic news for the sector,” he added.
He called on the federal government and stakeholders to support local polypropylene production with investment incentives, which would increase the manufacturing sector’s contribution to GDP and aid Nigeria’s goal of achieving a $1 trillion economy.
“With NNPC’s 13,000 metric tonnes capacity, Indorama’s production, and Dangote’s supply, Nigeria will become a net exporter, eliminating imports from Saudi Arabia, South Africa, South Korea, China, and India. This is a major step toward self-sufficiency,” Kadir-Ajayi said.
Dangote’s $2 Billion Petrochemical Plant to Drive Industrial Growth
Located in Ibeju-Lekki, Lagos, the $2 billion Dangote Petrochemical Plant is designed to produce 77 grades of polypropylene, with an annual 900,000 metric tonnes capacity and a projected $1.2 billion turnover.
The plant is expected to:
✅ Boost investment in downstream industries
✅ Create jobs
✅ Increase tax revenues
✅ Reduce foreign exchange outflow
✅ Enhance Nigeria’s GDP growth
Kadir-Ajayi urged the government to prioritize policies that promote local manufacturing, ensuring that Nigerian-made products are competitive in both price and quality.
“The government must create an enabling environment for manufacturers. With the right policies, Nigeria can fully leverage its industrial potential and become a major player in the global polypropylene market,” he said.
Dangote Refinery’s latest move positions Nigeria on the path to self-sufficiency in polypropylene production, a milestone that could reshape the country’s industrial landscape.