.Its polypropylene production ‘ll aid revival of textile industry, save Nigeria $267m annually—MAN
UGO AMADI
The growing influence of the Dangote Petroleum Refinery & Petrochemicals is extending far beyond Africa and the Middle East, as the United States imports over two million barrels of jet fuel from the world’s largest single-train refinery in March.
According to experts, this positive development should bring immense joy to Nigerians, as it attests to the unparalleled quality of the refinery’s products and the trust that the international community places in Dangote Refinery.
According to data from ship-tracking service Kpler, six vessels carrying around 1.7 million barrels of jet fuel from Dangote Petroleum Refinery arrived US ports this month.
Another vessel, Hafnia Andromeda, is set to arrive at the Everglades terminal on 29th March with approximately 348,000 barrels of jet fuel.
The shipments from the Dangote Refinery, with a capacity of 650,000 barrels per day (bpd)—Africa’s largest—highlight its potential to reshape global fuel trading dynamics, establishing a new swing supplier in the Atlantic Basin.
This shipment to the United States follows three cargoes of jet fuel, totalling around 130 million litres, exported from Nigeria to Saudi Arabia by the Dangote Petroleum Refinery.
The refinery has already demonstrated its ability to compete with European refiners on gasoline (PMS) exports, and these jet fuel shipments to the United States could challenge the economics of domestic producers in the world’s largest fuel-consuming nation.
According to Chief Operating Officer of TankTiger, Steven Barsamian, ‘’the surge in demand, partly driven by the influx of supply from Nigeria, is expected to lower jet fuel prices in the US ahead of the peak summer travel season.
US jet fuel imports from Dangote Refinery are expected to decrease aviation fuel prices during this period, according to trade analysts and storage brokers.
US jet fuel imports in March have averaged around 226,000 bpd, the highest since February 2023, underlining the global demand for products from Dangote Refinery.
The Dangote Refinery, which commenced production in January 2024, has already exported its products to almost every continent.
While the surge in US imports was partly triggered by a maintenance-related shutdown at the Phillips 66 Bayway refinery in New Jersey, analysts believe the choice of Dangote’s products highlights its growing presence in international markets, having successfully competed with European refiners in gasoline exports.
Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Dr Muda Yusuf, stated that the export of jet fuel to the United States by Dangote Refinery is a point of pride for Nigeria, highlighting the quality, standard, and the trust that the international community places in the refinery.
“Nothing could be more prideful for us as a country than the fact that we now have a refinery producing products that can be exported to the United States.
“It speaks to the quality, standards, and trust that international communities have in Dangote Refinery, because these are markets that don’t compromise on quality.
“They have stringent standards, and if they deem it worthy to import from Nigeria, it is a source of great pride,” he said.
The former Director-General of the Lagos Chamber of Commerce and Industry (LCCI) also emphasised that Dangote Refinery is enhancing Nigeria’s position on the global stage and should be supported by both citizens and the government.
“That is why all of us—citizens and the government—should do everything to support the refinery, as it is breaking many barriers and boosting our country’s reputation.
“The lesson here is that we should support the Dangote Refinery and other refineries with similar capacities, as they can provide us with significant leverage,” he added.
Public Policy Expert, Dr Abimbola Oyarinu, stated that the Nigerian economy would be in a better state today if the country had functional refineries in the past, rather than just exporting crude oil while importing refined petroleum products.
“This is something that should have been addressed since 2014.
“Things wouldn’t have reached this point—such as high inflation and unemployment—if we had a functioning refinery.
“However, both the government and the people failed to take action until Dangote stepped in with significant investment.
“The Dangote Refinery is not only reducing foreign exchange outflow, but it is also bringing in foreign exchange.
“It is unfortunate that despite this, some elites and those in power are still intent on sabotaging the refinery and Dangote himself,” he said.
The university lecturer also warned that the lack of ease in doing business and the frustration of local investments could discourage future investors.
“This is something the country should be proud of.
“We previously had a mono-economy, reliant solely on oil exports, but Dangote has helped diversify the sector by selling finished products to international markets.
“However, which investors would want to invest in Nigeria after seeing what Dangote is going through?” he queried.
Also, The Manufacturers Association of Nigeria (MAN) has stated that the production of polypropylene by the Dangote Petroleum Refinery & Petrochemicals will revive Nigeria’s struggling textile industry and save the country $267 million in import costs.
In an interview on the Channels Business Incorporated Programme, the Director-General of MAN, Segun Kadir-Ajayi, highlighted the struggles of the textile industry, which was once thriving and employed over 25,000 workers aged between 18 and 40 in the northern region alone.
He explained that many companies have been forced to shut down due to the absence of local polypropylene production and the scarcity of foreign exchange required for imports.
He further stated that the production of polypropylene by Dangote Refinery and Petrochemicals will ensure that Nigeria, which currently imports 90per cent of its annual polypropylene requirements (amounting to 250,000 metric tonnes), will now become a net exporter, generating foreign exchange to strengthen the economy.
“For us in the manufacturing sector, this is a welcome development. It more than covers the 250,000 metric tons that constitute our national demand, which has been severely lacking.
‘You can imagine the sectors it will impact—the textile industry, the plastic industry, the furniture industry.
“We are looking at an amount in the region of $267 million being saved. This is the amount spent every year in scarce dollars to import these materials. It is a welcome development for manufacturers, as it will incentivize investment in the sector,” he said.
Kadir, who lamented how the collapse of the textile industry led to widespread unemployment, stated that with the local production of polypropylene, manufacturers will no longer need to rely on imported polypropylene. This, he added, will help reduce their costs and improve efficiency.
“We have seen the global trend of the textile industry relying on the petrochemical industry. So, you can imagine what boost this is going to bring to the sector.
“And that it is now available locally and does not require that we continue to look for foreign exchange to be able to meet our demands. It is a cheering news for manufacturers,” he said.
He urged the federal government and other stakeholders to support the local production of polypropylene through incentives, stating that this would attract more investment into the sector and increase manufacturing’s contribution to GDP.
He added that this would significantly aid the government’s goal of achieving a $1 trillion economy.
“If the economy is going to save $267 million in imports at a time when the current government is striving to create a $1 trillion economy, this is a significant saving, especially considering the scarcity and inadequacy of foreign exchange supply.
“When we see champions like this blazing the trail, showing that we can even become a net exporter, it is certainly worthy of support. The NNPC has a capacity of 13,000 metric tons.
“When you add this to what Indorama has, along with the massive supply we will have from Dangote, we will become a net exporter. This means all our imports from Saudi Arabia, South Africa, South Korea, China, and India will be eliminated. We can now aim for self-sufficiency and even export for foreign exchange,” he added.
Speaking further, he stated that polypropylene production, with its far-reaching impact, will extend beyond the Dangote Refinery & Petrochemicals, resulting in significant job creation, increased tax revenue for the government, higher investment in the sector, foreign exchange earnings, and supporting the manufacturing sector in making a substantial contribution to the country’s GDP, among other benefits.
“I believe that what we should then be looking forward to is the government’s deliberate efforts to incentivize more investment in that sector and looking for support that will allow us to patronize what is made in Nigeria.
“We are able to earn the respect for the patronage of made-in Nigerian products in terms of price and quality of delivery,” he stressed.
Dangote’s $2 billion Petrochemical Plant in Ibeju-Lekki, Lagos, is designed to produce 77 grades of polypropylene. With a capacity of 900,000 metric tonnes per year and a turnover of $1.2 billion, it aims to meet the growing demand in plastic processing industries both in Africa and globally.
The plant is expected to boost investment in downstream industries, create jobs, increase tax revenues, reduce foreign exchange outflow, and contribute to the country’s GDP growth.
