Nigeria to save $267m from Dangote polypropylene production – MAN
Agency Report
The Manufacturers Association of Nigeria (MAN) has said 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 90 per 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’s 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.
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.
He stated that polypropylene production, with its far-reaching impact, will extend beyond the Dangote Refinery and 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.
