The Dangote Group is intensifying its move into high-value petrochemicals, with its Lekki-based refinery set to begin large-scale production of key industrial chemicals used in plastics and detergents.
This expansion follows a strategic partnership between Dangote Petroleum Refinery and Petrochemicals and Honeywell, under which the U.S. firm will provide advanced process technologies and catalysts to boost production capacity.
In a statement issued from Charlotte, North Carolina, Honeywell said the collaboration would enable the refinery to significantly scale up output of propylene and linear alkylbenzene (LAB) both high-margin petrochemical products with strong global demand.
Under the agreement, the refinery will deploy Honeywell UOP’s Oleflex™ technology to produce an additional 750,000 metric tonnes of propylene annually. Propylene is a critical raw material used in packaging, consumer goods, and a wide range of industrial applications.
The facility will also integrate a suite of petrochemical technologies to produce 400,000 metric tonnes of LAB per year. LAB is a key ingredient in detergents and cleaning products, and at full capacity, the Lekki plant is expected to rank among the largest LAB production facilities globally.
Honeywell noted that the partnership would enhance regional energy security by reducing dependence on imports, while also stimulating industrial growth and strengthening supply chains across West Africa.
President of the Dangote Group, Aliko Dangote, said the collaboration aligns with the company’s long-term vision of boosting Nigeria’s industrial base.
“Our continued collaboration with Honeywell advances our vision to strengthen Nigeria’s industrial sector, supporting supply chain independence and economic growth,” he said.
He added that the adoption of advanced processing technologies would position the refinery as a competitive global supplier while meeting rising demand for petrochemical products.
President of Honeywell UOP, Rajesh Gattupalli, said the deployment of advanced technologies and digital solutions would enhance efficiency and maximise output across the refinery’s operations.
The development marks a significant shift for the Lekki refinery from a primary focus on fuel production to higher-value chemical manufacturing, a segment known for stronger margins and more stable long-term demand.
Honeywell also indicated that the broader collaboration could support plans to expand the refinery’s capacity from 650,000 barrels per day to about 1.4 million barrels per day by 2028, potentially making it the largest refinery in the world.
The move comes as African economies push to deepen local manufacturing and reduce reliance on imported industrial inputs, particularly in sectors such as plastics, packaging, and household goods.
Dangote Sugar Targets N500 Billion Capital Raise
In a related development, 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 at the company’s 20th Annual General Meeting in Lagos and disclosed in a statement signed by Company Secretary, Temitope Hassan.
According to the company, the capital raise is aimed at strengthening its financial base and supporting long-term operational growth. Shareholders authorised the board to issue ordinary shares under terms to be determined by the directors, including provisions for underwriting and offering unsubscribed shares to interested investors.
The move reflects Dangote Sugar’s expansion strategy, particularly in alignment with Nigeria’s push for greater self-sufficiency in sugar production through backward integration.
The planned fundraising ranks among the largest rights issues in Nigeria’s corporate history, underscoring the group’s broader ambition to scale operations across both its industrial and consumer goods segments.
TNAM
Edited By Egwu Patience Nnennaya
