Aliko Dangote is accelerating his expansion into petrochemicals, scaling up refinery capabilities to manufacture essential inputs for detergents and cleaning products. The strategy targets another import-reliant area of Nigeria’s economy while integrating his operations more firmly into the global supply chain.
The 650,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals FZE plans to utilise technology from Honeywell International Inc. to produce about 400,000 metric tonnes of linear alkylbenzene (LAB) annually, a key raw material in detergent production, according to Bloomberg.
This development positions the company to tap into a global LAB market expected by Grand View Research to reach $11.5 billion by 2030. It also supports Dangote’s wider goal of growing revenues to $100 billion within four years, alongside ongoing investments in fertiliser production and plans for a major port project in Lagos.
Refinery upgrade
At the same time, the refinery has entered into another agreement with Honeywell to manufacture an additional 750,000 metric tonnes of propylene each year, with both initiatives scheduled for completion within three years.
This latest step builds on a previous deal signed last year with Honeywell to supply technology and services aimed at increasing the refinery’s capacity to 1.4 million barrels per day by 2028.
Since the start of the year, the Dangote Group has intensified its industrial growth drive through two major refining and petrochemical agreements worth a combined $750 million. Earlier this month, Dangote also introduced a $40 billion expansion plan covering the next five years.
Outside the refining segment, its subsidiary Dangote Cement Plc has secured a $1 billion deal with Sinoma International Engineering to construct new plants and upgrade existing facilities across seven African countries.