• Deal with Honeywell to produce propylene and detergent inputs locally
• Projects aim to reduce imports and strengthen industrial value chains
• Strategy targets higher margins beyond traditional oil refining

On April 20, U.S. industrial technology provider Honeywell announced it will supply process technologies and catalysts to Dangote to produce inputs used in plastics and detergents. The agreement focuses on the Lekki complex near Lagos, the centerpiece of the Nigerian group’s industrial system, which includes its 650,000-barrel-per-day oil refinery.

The deal comes nearly six months after Dangote awarded Germany’s Thyssenkrupp AG a contract to optimize its urea production, part of a broader push to make Nigeria self-sufficient in key industrial products.

A structured shift up the value chain

Under the agreement, Dangote will deploy Honeywell UOP’s Oleflex technology to produce an additional 750,000 tons of propylene per year. The product is widely used in packaging, consumer goods, and industrial materials, expanding the scope of the Lekki complex.

The group will also implement technologies and catalysts to produce 400,000 tons per year of linear alkylbenzene (LAB), a key ingredient in detergents and cleaning products. At full capacity, the Lekki facility is expected to rank among the largest LAB production sites globally.

Both projects are scheduled over a three-year period. Financial terms were not disclosed, but the move fits into a broader plan to expand an industrial site designed to evolve into an integrated hub. The agreement builds on a longstanding partnership between Dangote and Honeywell, which has supported the refinery with process technologies, automation systems, and engineering services.

“Our continued collaboration with Honeywell advances our vision to strengthen Nigeria’s industrial sector, supporting the nation’s supply chain independence and economic growth,” said Aliko Dangote, chief executive of the group. “Honeywell’s technologies enable us to help the region meet rising demand for consumer and industrial goods, positioning Dangote as a global supplier and driving viable economic development throughout West Africa.”

A strategic repositioning to capture more value

By moving into LAB and propylene, Dangote is targeting segments with higher margins than traditional refining. Nigeria currently imports most of these products, leading to foreign exchange outflows and dependence on external suppliers. Local production could reduce imports, secure supply for domestic industries, and capture more value along the production chain.

The global LAB market is expected to reach $11.5 billion by 2030, according to Grand View Research. Dangote aims not only to serve African markets but also to export, positioning itself within global supply chains.

This strategy reflects a broader trend in emerging markets, where energy players integrate petrochemicals to improve margins and stabilize revenues. The model mirrors large industrial complexes that combine refining and chemical production to convert crude oil into higher-value industrial products.

Beyond this deal, Dangote continues to pursue a wider expansion strategy, targeting $100 billion in revenue through investments in fertilizers, infrastructure, and other industrial segments.

Olivier de Souza