(Ecofin Agency) - • Dangote signs deal with US firm Vinmar to export Nigerian polypropylene
• New $2B plant targets 830,000 t/year capacity, 600,000 t for export
• Nigeria aims to cut $407M in imports and build a global presence

Nigeria, hitherto heavily reliant on polypropylene imports, is poised for a major industrial shift in this sector. This plastic, used in packaging, textiles, and agribusiness, previously cost Nigerian external trade up to $407 million annually.

On Wednesday, Dangote Group officially initiated the production of polypropylene at its petrochemical plant attached to the Lekki refinery, concurrently announcing an export agreement with American firm Vinmar. The partnership stipulates the marketing of the Nigerian product outside Africa, packaged in 25 kg bags conforming to global industrial standards.

With an annual capacity of 830,000 tons, the factory is projected to export approximately 600,000 tons, once local demand is met, equaling 250,000 tons per year. "We are delighted to partner with Vinmar to introduce Dangote Polypropylene to global markets," said Hajiya Fatima Aliko Dangote, executive director of Dangote Group.

With this $2 billion investment, Dangote Group aims for up to $1.2 billion in yearly turnover by capitalizing locally on a material derived from refining, while Nigeria was content importing a strategic input.

To establish a lasting presence on the global market, Dangote Group must secure oil supply, improve export logistics, and face Asian competition. If successful, it could pave the way for other high-value petrochemical industries.