The Dangote Group has taken a significant step into high-value petrochemical production, with its Lekki refinery in Lagos set to begin large-scale manufacturing of key industrial chemicals used in plastics and detergents, according to a report by ThisDay.
Partnership with Honeywell
This move follows a new agreement between Dangote Petroleum Refinery and Petrochemicals and the US-based company Honeywell to supply advanced process technologies and catalysts. The partnership aims to significantly ramp up production of propylene and linear alkylbenzene (LAB), both widely used in manufacturing and known for strong global demand.
Production Targets
Under the agreement, the refinery will deploy Honeywell UOP's Oleflex technology to produce an additional 750,000 metric tonnes of propylene annually. This chemical is widely used in packaging materials, consumer goods, and industrial products. The facility will also integrate additional technologies to produce 400,000 metric tonnes per year of LAB, a core ingredient in detergents and cleaning products. At full capacity, the Lekki plant is expected to rank among the largest LAB production facilities globally.
Industrial Growth Ambitions
President of Dangote Group, Aliko Dangote, said the partnership aligns with efforts to strengthen Nigeria's industrial base and reduce dependence on imported materials. He noted that adopting advanced technologies would help meet rising demand for petrochemical products locally and across the region, while positioning the company as a global supplier. Dangote stated, "Our continued collaboration with Honeywell advances our vision to strengthen Nigeria's industrial sector, supporting the nation's supply chain independence and economic growth."
Efficiency Gains
President of Honeywell UOP, Rajesh Gattupalli, said the deployment of advanced technologies and digital solutions would enhance efficiency and boost output. He added that the partnership would improve reliability across existing and new processing units, helping the refinery meet growing global demand for petrochemical products. Honeywell also noted that the broader collaboration could support Dangote's plan to expand refining capacity from 650,000 barrels per day to about 1.4 million barrels per day by 2028.
Strategic Shift
This development signals a strategic shift for the Dangote refinery from primarily fuel production to higher-margin petrochemical manufacturing, a segment known for more stable long-term demand. The expansion comes as African economies increasingly focus on strengthening local manufacturing and reducing dependence on imported industrial inputs, particularly in sectors such as plastics and household goods.
Dangote Sugar Plans N500bn Capital Raise
Meanwhile, Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a Rights Issue, subject to regulatory approvals. The decision was approved by shareholders at the company's 20th Annual General Meeting in Lagos, according to a statement signed by Company Secretary, Temitope Hassan. The company said the planned capital raise is aimed at strengthening its financial position and supporting long-term growth. Shareholders authorised the board to issue ordinary shares under terms to be determined by directors, including provisions for underwriting and offering unsubscribed shares to interested investors. The move reflects Dangote Sugar's strategy to expand operations in line with Nigeria's push for self-sufficiency in sugar production through backward integration.
Dangote Begins Production of Peugeot SUVs
Legit.ng earlier reported that Dangote Peugeot Automobiles Nigeria Limited (DPAN) has officially started assembling the Peugeot 3008 and 5008 models at its Kaduna facility. The first batch of these vehicles is projected to reach the market in April 2026. The models come in Allure and GT trims, powered by a 1.6-litre THP engine paired with an EAT6 automatic transmission. The move is part of a broader effort by DPAN, in partnership with Dangote Industries and Peugeot, to revive the brand's presence.
