KEY POINTS
- Dangote Refinery is expanding into petrochemicals through a major partnership with Honeywell.
- The project will produce 750,000MT of propylene and 400,000MT of LAB annually.
- Dangote Sugar Refinery plans a ₦500bn rights issue to fund expansion and growth.
Dangote Group is accelerating its diversification into high-value petrochemicals, with its refinery in Lekki, Lagos set to commence large-scale production of key industrial chemicals used in plastics and detergents.
The expansion follows a strategic agreement between Dangote Petroleum Refinery and Petrochemicals and Honeywell, under which the American firm will supply advanced processing technologies and catalysts to enhance the refinery’s petrochemical output.
According to details released by Honeywell, the collaboration will significantly increase the production of propylene and linear alkylbenzene (LAB)—two high-demand petrochemical products essential for manufacturing consumer goods and cleaning agents.
Under the agreement, the refinery will deploy Honeywell UOP’s Oleflex™ technology to produce an additional 750,000 metric tonnes of propylene annually. Propylene is widely used in packaging materials, plastics, and various industrial applications.
Refinery Targets Global Petrochemical Market
In addition, the facility will produce about 400,000 metric tonnes of LAB per year, a critical component in detergents and household cleaning products. Once fully operational, the Lekki plant is expected to rank among the largest LAB production facilities globally.
President of the Dangote Group, Aliko Dangote, said the partnership aligns with the company’s long-term goal of strengthening Nigeria’s industrial capacity and reducing dependence on imports.
He noted that adopting advanced technologies would not only meet domestic and regional demand but also position the company as a competitive global supplier of petrochemical products.
Honeywell’s President of UOP, Rajesh Gattupalli, added that the collaboration would improve efficiency, reliability, and overall output, enabling the refinery to meet rising global demand.
The move signals a strategic shift for the refinery, from primarily producing fuels to entering higher-margin chemical manufacturing, a sector known for stronger profitability and long-term demand stability.
Industry observers say the expansion comes at a critical time when African economies are seeking to deepen local manufacturing and reduce reliance on imported industrial inputs, particularly in plastics and consumer goods.
