₦airaland Forum

Dangote Oil Refinery, the largest in Africa, has set its sights on capturing Nigeria’s $267.7 million polypropylene market starting next month, Aliko Dangote, president of the group said, as its largest oil and gas project edges closer to full operational status.

The refinery, part of the vast Dangote Industries conglomerate, is expected to reduce Nigeria’s reliance on imported polypropylene—a crucial raw material in various industries, including packaging, textiles, and automotive parts.

“Let me assure you of one thing, Nigeria from October will not import any more polypropylene, which used to be about a quarter of a million tons,” he said. “No more imports of polypropylene.”


Polypropylene, a versatile plastic used in a wide range of applications from packaging and textiles to automotive parts and medical equipment, is currently imported in large quantities by Nigerian manufacturers.

Annual polypropylene import into Nigeria is estimated at $267.7 million, according to TradeMap, which peaked at $407 million in 2022.

The latest data by the National Bureau of Statistics (NBS) revealed that the country brought in the product valued at N99.6 billion in the first quarter (Q1) of this year, placing it at number 12 on the top 15 products imported by Nigeria from the rest of the world.

“We will satisfy the market 100 percent,” said Dangote. “This is so because these industries that are struggling and having to go and look for FX that they will not get and still have to keep stock for four or five months because it’s not easy shipping, clearing, and whatever, can buy as they need.”

He noted that the refinery is determined to do this because it will reduce the cost of importation and scramble for foreign exchange.


“We are also in the business. And our demand also as Dangote is huge. We have Dangote Packaging and are one of the biggest demand users of polypropylene,” he added.

Saudi Arabia, South Africa, South Korea, China, and Vietnam were the top importers of polypropylene into Nigeria in the first quarter of 2024, covering 90 percent of Nigeria’s demand.

Polypropylene is a versatile plastic used in a wide range of packaging applications. It’s often preferred over materials like cellophane, metal, and paper due to its flexibility, durability, and cost-effectiveness.

It is used in food and confectionery, tobacco, and clothing industries in flexible form while in rigid form, polypropylene can be found in caps, closures, pallets, crates, bottles, JIT storage solutions, and containers for products like condiments, detergents, toiletries, and yogurt.

Read also: Lifting of petrol from Dangote refinery to start Sept 15 NNPC

Polypropylene’s versatility and benefits make it a popular choice for packaging across many industries.

“The polypropylene market is growing rapidly owing to the rising demand from the packaging industry. This high demand is associated with the increasing consumption of packaged food and beverages,” said Fortune Business Insights, a research firm.

“It also helps in reducing the possibility of food deterioration and quality loss.”


https://businessday.ng/news/article/dangote-refinery-eyes-nigerias-268m-polypropylene-market/?amp

I wish everything he produces would be market friendly for Nigerians.

Ikaeniyan0:
“We will satisfy the market 100 percent,” said Dangote. “This is so because these industries that are struggling and having to go and look for FX that they will not get and still have to keep stock for four or five months because it’s not easy shipping, clearing, and whatever, can buy as they need.”

He noted that the refinery is determined to do this because it will reduce the cost of importation and scramble for foreign exchange.


“We are also in the business. And our demand also as Dangote is huge. We have Dangote Packaging and are one of the biggest demand users of polypropylene,” he added.

Polypropylene is a versatile plastic used in a wide range of packaging applications. It’s often preferred over materials like cellophane, metal, and paper due to its flexibility, durability, and cost-effectiveness.

It is used in food and confectionery, tobacco, and clothing industries in flexible form while in rigid form, polypropylene can be found in caps, closures, pallets, crates, bottles, JIT storage solutions, and containers for products like condiments, detergents, toiletries, and yogurt.


Polypropylene’s versatility and benefits make it a popular choice for packaging across many industries.

“The polypropylene market is growing rapidly owing to the rising demand from the packaging industry. This high demand is associated with the increasing consumption of packaged food and beverages,” said Fortune Business Insights, a research firm.

“It also helps in reducing the possibility of food deterioration and quality loss.”


https://businessday.ng/news/article/dangote-refinery-eyes-nigerias-268m-polypropylene-market/?amp

Let's even forget about the fact that it will give the naira more room to breathe, just imagine the positive effect its going to have on industries in Nigeria

Ikaeniyan0:
Let's even forget about the fact that it will give the naira more room to breathe, just imagine the positive effect its going to have on industries in Nigeria

This is really great. The only thing we hope for is for it to be price friendly for the Nigerian market. What is the essence of removing pressure on the dollar and strengthen the economic outlook of the country without visible improvement the people wellbeing?

thesolutions:
This is really great. The only thing we hope for is for it to be price friendly for the Nigerian market. What is the essence of removing pressure on the dollar and strengthen the economic outlook of the country without visible improvement the people wellbeing?

Dangote won't sell below the market price in naira. He's not in business to make a loss. Price will eventually fall sha, when the naira start gaining value before Dec 2024.

Ikaeniyan0:
Dangote won't sell below the market price in naira. He's not in business to make a loss. Price will eventually fall sha, when the naira start gaining value before Dec 2024.

you sure knows he won't make a loss if he sells at half market price. The product is a bye product just like tar. If we have a serious government, a working refinery will determine the price dangote will sell theirs. In just few days of his refinery operation, he has regained his status as Africa's richest man. Give him 2 years without price control, he will be gunning for top 5 in the world.
Price control won't affect his company. It will control his wealth.

thesolutions:
you sure knows he won't make a loss if he sells at half market price. The product is a bye product just like tar. If we have a serious government, a working refinery will determine the price dangote will sell theirs. In just few days of his refinery operation, he has regained his status as Africa's richest man. Give him 2 years without price control, he will be gunning for top 5 in the world.
Price control won't affect his company. It will control his wealth.

If it cost #1000 when it's imported, buying from Dangote won't make it become #500, pata pata #800-#950.

But the benefit of producing it locally far outweigh the price it will be sold. Dangote can't sell at an outrageous price

Ikaeniyan0:
If it cost #1000 when it's imported, buying from Dangote won't make it become #500, pata pata #800-#950.

But the benefit of producing it locally far outweigh the price it will be sold. Dangote can't sell at an outrageous price

The benefits of producing it locally is that it will make forex available for government to spend frivolously. As long as government is not spending forex on machineries and industrial equipments, it only benefits those whose need for ferex is only tourism to other nations.
If government spending it forex on machineries for industrial revolution is not seen on daily bases, the economy will either remain the same or get worse even with improved local private participation in production.