Dangote’s Polypropylene Production To Revive Textile Industry, Save Nigeria 267 Million USD
Addis Ababa: The Manufacturers Association of Nigeria (MAN) has stated that the Dangote Petroleum Refinery and Petrochemicals’ production of polypropylene will revive Nigeria’s struggling textile industry and save the country 267 million USD in import costs.
According to Ethiopian News Agency, the 2 billion USD Petrochemical Plant in Ibeju-Lekki, Lagos, is designed to produce 77 grades of polypropylene. 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. Kadir further stated that the production of polypropylene by Dangote Petroleum Refinery and Petrochemicals will ensure that Nigeria, which currently imports 90 percent 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 covers more than 250,000 metric tons, which constitutes 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.”
The project is expected to save 267 million USD, he indicated. “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.”
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.