Nigeria’s industrial landscape is poised for a significant transformation as Aliko Dangote advances plans to expand refining operations into high-value petrochemicals.

Dangote Group has confirmed that its Lekki-based refinery will commence large-scale production of critical industrial chemicals used in plastics and detergents, following a strategic partnership with Honeywell to deploy advanced processing technologies.

Under the agreement, the refinery is expected to produce an additional 750,000 metric tonnes of propylene annually using Honeywell’s Oleflex technology. Propylene serves as a key feedstock in packaging, consumer goods, and a wide range of industrial applications.

The facility will also deliver approximately 400,000 metric tonnes per year of linear alkylbenzene, a core ingredient in detergents and cleaning products. At full capacity, the plant is projected to rank among the largest petrochemical complexes globally.

Industry analysts describe the move as a strategic pivot from traditional fuel refining toward higher-margin chemical production, a segment characterized by more resilient demand and stronger long-term returns.

According to Dangote, the expansion forms part of a broader strategy to deepen Nigeria’s industrial base, reduce reliance on imports, and position the country as a competitive supplier in global petrochemical markets.

The development aligns with wider continental efforts to strengthen local manufacturing capacity and cut dependence on imported industrial inputs, particularly across plastics, packaging, and household goods sectors.

In a related development, Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a rights issue aimed at funding expansion and reinforcing its financial position.

Analysts say these initiatives underscore a broader vision within the Dangote Group to build an integrated industrial ecosystem, with the potential to reshape manufacturing and supply chains in Nigeria and across Africa.