Detergent, Cosmetic Brands Others Set To Bounce Back As Dangote Refinery Begins Operation
In the last few months, some manufacturers have suspended the production of detergents, cosmetics, and other brands due to challenges in bringing in raw materials. Now it seems some good tidings will be flowing from the pipeline. Most of those production lines are set to bounce back into operation as the 650, 000 barrels per day Dangote refinery is poised to start the production of critical materials like naphtha and polypropylene that will help activate affected industries like cosmetics, detergent, textiles, and plastics among others.
Recently, Aliko Dangote, Business Magnate and President of Dangote Group during an interview, spoke extensively on the potential of the refinery which is scheduled for commissioning on May 22, 2023.
He said, “The refinery’s completion will not only create direct and indirect jobs but also lead to skills transfer and technology acquisition opportunities that will benefit the downstream sector. Moreover, the refinery’s production of critical products like naphtha and polypropylene will stimulate the development of other industries, such as cosmetics, plastics, and textiles.”
“We see room for the development of added value in agribusiness too. Here, initiatives like our Sugar Backward Integration Projects look to create a strong localized supply in the sugar industry. With a goal to produce around 0.5 million tons of sugar per year from locally grown sugar cane, benefits will be created across the sugar value chain for local suppliers.”
According to Dangote, Nigeria has a variety of untapped natural resources that, for commodity-driven investors, offer options in the upstream, midstream, and downstream segments.
Also, Dangote believes that Nigeria’s import dependency and reliance on foreign markets present major prospects for import substitution and supply chain localisation. He stated that across various consumer-goods sectors of the economy, as well as supply-side needs for commercial and industrial enterprises, there are different options to set up localised supply networks.
According to a report, the Group Executive Director, Strategy, Portfolio Development, and Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, said the Dangote refinery would stimulate economic development in Nigeria because it could meet 100% of the Nigerian requirement for all liquid products.
These products include gasoline, diesel, polypropylene, kerosene, and aviation jet fuel. He also said the refinery can provide a surplus of each of these products for export. Edwin had said.
“The high volume of petrol output from the refinery would transform Nigeria from a petrol import-dependent country to an exporter of refined petroleum products.”
“We believe change is imminent, with the Dangote Refinery looking set to begin operation towards the twilight of 2023. If fully utilized, we believe the refinery can redefine Nigeria’s domestic production of white products (petrol, Automotive Gasoline Oil, AGO and Dual-Purpose Kerosene, DPK), and potentially turn the country into a net exporter.”