Dangote Refinery to Produce Detergent Materials in Major Import Substitution Move
The Dangote Petroleum Refinery has announced ambitious plans to commence the production of key raw materials used in the manufacturing of detergents, a move aimed at ending Nigeria’s reliance on imported inputs for the cleaning industry.
David Bird, the Chief Executive Officer of the refinery, disclosed the development during a news conference on Wednesday, revealing that the company is finalizing commercial terms for the installation of a Linear Alkyl Benzene (LAB) plant.
LAB is the primary feedstock for producing surfactants, the active ingredients that create foam and cleaning action in detergents. Bird highlighted that currently, the West African region imports 100% of the surfactants used in local detergent production.
The CEO expressed satisfaction with the progress of the project, noting that they have been in deep discussions with a licenser and are on the verge of finalizing the commercial terms for the plant’s installation.
He described the product as the essential component that makes the bubbles in detergent, emphasizing that the new facility will completely change the current supply chain where manufacturers rely entirely on foreign markets.
The initiative is expected to have a significant ripple effect across the manufacturing sector. By producing these materials locally, the Dangote Refinery aims to drastically cut foreign exchange demand for raw material imports and lower production costs.
This local sourcing is expected to improve the bottom line for detergent manufacturers, potentially leading to lower retail prices for consumers and boosting national self-sufficiency.
Bird explained that the move aligns with the refinery’s broader strategy of utilizing Nigeria’s resources to meet local needs, stating that they evaluate business opportunities based on demands driven by the sheer size of the population.
He insisted that essential products such as fuels, lubricants, and detergents should not be luxury items, and this latest expansion positions the refinery as a critical hub for industrial raw materials in West Africa.
