Aliko Dangote, President of the Dangote Group, has announced a pivotal shift in Nigeria’s polypropylene industry. Starting in October, the country will cease importing polypropylene, thanks to the imminent full operational capacity of the Dangote oil refinery. This move signifies a substantial step towards reducing Nigeria’s reliance on imported polypropylene, a crucial material used in packaging, textiles, and automotive manufacturing.
Dangote emphasized, “Nigeria will no longer import polypropylene from October,” noting that previously, the country imported about 250,000 tons of this essential material. With the refinery’s entry into Nigeria’s $267.7 million polypropylene market next month, the Dangote Group aims to fulfill the domestic demand and alleviate the challenges associated with foreign exchange and lengthy shipping times.
Polypropylene, a versatile plastic employed in a wide range of applications including packaging, automotive parts, and medical equipment, has been a significant import for Nigerian manufacturers. According to TradeMap, Nigeria’s annual polypropylene imports are valued at approximately $267.7 million, peaking at $407 million in 2022. Recent data from the National Bureau of Statistics (NBS) indicates that in the first quarter of this year alone, Nigeria imported polypropylene worth N99.6 billion, ranking it as the 12th most imported product.
Dangote’s announcement underscores how local production will ease the burden on manufacturers who have previously had to stockpile materials due to import delays. The refinery’s capabilities will eliminate the need for such extensive stocking and mitigate the challenges of foreign exchange fluctuations and shipping delays.
Additionally, Dangote highlighted that his conglomerate is a major polypropylene consumer, particularly for its packaging operations. Currently, Nigeria sources its polypropylene from countries including Saudi Arabia, South Africa, South Korea, China, and Vietnam, with these imports covering 90% of the country’s demand in the first quarter of 2024.
The polypropylene market, driven by its flexibility, durability, and cost-effectiveness, is experiencing rapid growth, especially in the packaging sector for food and beverages. Fortune Business Insights notes that the material is valued for its role in preserving product quality and reducing spoilage, further accentuating the significance of this local production breakthrough.
Written by : Blossom Kugbere.