Dangote Polypropylene Production Set to Revive Textile Industry and Save Nigeria $267 Million, Claims MAN
Lagos, Nigeria – The Manufacturers Association of Nigeria (MAN) has announced a transformative development that is expected to revitalize the country’s once-thriving textile industry. In a detailed interview on the Channels Business Incorporated Programme, Segun Kadir-Ajayi, Director-General of MAN, revealed that the upcoming production of polypropylene by the Dangote Petroleum Refinery & Petrochemicals is poised to revolutionize local manufacturing and generate annual savings of approximately $267 million by reducing Nigeria’s reliance on imported materials.
A New Dawn for the Textile Sector
For decades, Nigeria’s textile industry has faced significant challenges stemming from the lack of locally produced raw materials, particularly polypropylene—a key component in textile production as well as in plastics, furniture, and other industries. The absence of a sustainable supply of this vital material forced manufacturers to depend heavily on imports, leading to soaring costs and, ultimately, the closure of numerous factories. With Dangote’s state-of-the-art petrochemical plant now gearing up to produce 77 grades of polypropylene, the landscape is set to change dramatically.
Economic and Employment Impacts
MAN’s Director-General underscored that local polypropylene production will not only help the industry save precious foreign exchange but also stimulate job creation and investment across multiple sectors. Historically, the textile industry provided employment for over 25,000 young workers in the northern region alone. The renewed availability of competitively priced, high-quality polypropylene is expected to reinvigorate these manufacturing hubs and restore livelihoods that were once jeopardized by high production costs and dwindling demand. “For the manufacturing sector, this development is a game changer,” Kadir-Ajayi stated. “We can now look forward to eliminating the need to import nearly 90% of our polypropylene requirement, which has been a major drain on our foreign reserves.”
Beyond Savings: A Catalyst for National Growth
The anticipated savings of $267 million in import costs are just one facet of the broader economic benefits. By achieving self-sufficiency in polypropylene, Nigeria stands to boost domestic production capabilities, enhance tax revenues, and generate valuable foreign exchange earnings through exports. This shift not only aligns with the country’s broader industrialization goals but also supports the government’s ambitious target of establishing a $1 trillion economy. Industry experts argue that if local production can meet the national demand of approximately 250,000 metric tonnes per annum, the entire value chain—from textiles and plastics to furniture manufacturing—will experience significant cost reductions and efficiency gains.
A Call for Government and Stakeholder Support
While the prospects are overwhelmingly positive, Kadir-Ajayi emphasized the need for continued government intervention in the form of incentives and supportive policies. “For us to truly harness the benefits of this development, there must be a concerted effort from the federal government and all stakeholders to support local production,” he urged. With Dangote’s $2 billion petrochemical plant in Ibeju-Lekki designed to produce 900,000 metric tonnes per year and generate a turnover of $1.2 billion, the cascading benefits across downstream industries are expected to be transformative. MAN has called on policymakers to facilitate a business environment that encourages investment, mitigates operational challenges, and ultimately positions Nigeria as a net exporter of polypropylene.
Looking to the Future
As the Dangote Refinery & Petrochemicals prepares to launch its polypropylene production, industry leaders and economists alike are optimistic about the long-term benefits for Nigeria’s industrial base. The anticipated resurgence in the textile sector, along with improvements in other manufacturing domains, could mark a pivotal turning point in the nation’s economic narrative. By reducing the current reliance on imported raw materials and bolstering local production, this development is set to enhance Nigeria’s global competitiveness, stimulate innovation, and foster sustainable economic growth for years to come.
