Industry stakeholders say a new petrochemical collaboration between Dangote Refinery and Honeywell UOP could significantly reshape Nigeria’s manufacturing landscape by reducing reliance on imported raw materials and easing pressure on foreign exchange.
The refinery plans to deploy Honeywell UOP’s Oleflex™ technology to increase annual production of propylene by about 750,000 metric tonnes.
Propylene is widely used in plastics, packaging materials, and many consumer goods. The plant also targets yearly output of 400,000 metric tonnes of Linear Alkyl Benzene, a key ingredient in detergent production.
Although financial details of the agreement were not disclosed, operators in the manufacturing sector believe the development will create strong ripple effects across industries that depend on petrochemical inputs.
Segun Kuti-George, Deputy National President of the National Association of Small-Scale Industrialists, described the initiative as a long-overdue step toward making refineries operate as multi-product industrial hubs rather than focusing mainly on fuel production.
He explained that Nigerian manufacturers currently spend billions of dollars importing resins and other petrochemical materials used in paints, plastics, construction products, and household goods. Local production of these inputs, he said, would significantly reduce import bills and support domestic industries.
Kuti-George noted that his own company imports polyester resin from countries such as South Africa, Singapore, the United States, China, and Turkey for the production of cultured marble and granite, highlighting the scale of dependence on foreign suppliers.
He added that the project would promote backward integration, conserve foreign exchange, create jobs, and help stabilise the naira by cutting demand for imported raw materials. He urged the government to sustain the momentum by providing policies that encourage the use of locally produced petrochemical inputs.
Also speaking, Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, said the partnership marks a major step in strengthening Nigeria’s industrial base.
Yusuf noted that many of Nigeria’s largest imports are industrial raw materials linked to plastics and detergent manufacturing. Increasing local production of these materials, he said, would ease pressure on foreign reserves and improve manufacturing capacity.
He added that the initiative could improve economic linkages across sectors, support export opportunities, and enhance long-term economic security.
Yusuf called for consistent fiscal and trade policies, tariff protection, and access to long-term financing to help domestic manufacturers scale and remain competitive.
Stakeholders maintain that the Dangote-Honeywell partnership represents a critical move toward deepening Nigeria’s petrochemical value chain, lowering import dependence, and strengthening the country’s industrial economy.
