Dangote Refinery expands into lucrative chemicals market, tapping $11.5 billion opportunity amid import gap

Aliko Dangote is deepening his push into petrochemicals, expanding refinery operations to produce key ingredients used in detergents and cleaning products, targeting another import-dependent segment of Nigeria’s economy while positioning his business within the global supply chain.

Apr 21, 2026 - 08:34

Dangote Refinery expands into lucrative chemicals market, tapping $11.5 billion opportunity amid import gap

Aliko Dangote met with global financial leaders at the IMF and World Bank Spring Meetings in Washington, as he pushes for increased investment in Nigeria’s energy and industrial sectors amid a shift to net fuel exports. [Photo by Ernest Ankomah/Getty Images]

Aliko Dangote is deepening his push into petrochemicals, expanding refinery operations to produce key ingredients used in detergents and cleaning products, targeting another import-dependent segment of Nigeria’s economy while positioning his business within the global supply chain.

Aliko Dangote is expanding his refinery operations into petrochemicals, focusing on producing key ingredients for detergents and cleaning products.
Dangote's refinery will utilise Honeywell technology to produce 400,000 metric tons of linear alkylbenzene (LAB) annually.
The refinery also partnered with Honeywell to produce 750,000 metric tons of propylene annually, with both projects expected to finish within three years.
These expansions are part of Dangote's broader strategy to drive annual revenues to $100 billion in four years.

The 650,000-barrels-per-day Dangote Petroleum Refinery and Petrochemicals FZE will deploy technology from Honeywell International Inc. to produce 400,000 metric tons annually of linear alkylbenzene (LAB), a core input in detergent manufacturing, according to Bloomberg.

The move opens access to a global LAB market projected by Grand View Research to reach $11.5 billion by 2030. It also aligns with Dangote’s broader ambition to scale revenues to $100 billion within four years, alongside investments in fertiliser production and plans to build a major port in Lagos.

Refinery expansion

In a parallel development, the refinery has signed a separate agreement with Honeywell to produce an additional 750,000 metric tons of propylene annually, with both projects expected to be completed within three years.

The expansion builds on an earlier partnership signed last year with Honeywell to provide technology and services aimed at doubling the refinery’s capacity to 1.4 million barrels per day by 2028.

So far this year, the Dangote Group has accelerated its industrial expansion through two major agreements in refining and petrochemicals valued at a combined $750 million. Earlier this month, Dangote unveiled a $40 billion growth plan targeting the next five years.

Beyond refining, its subsidiary Dangote Cement Plc has also signed a $1 billion agreement with Sinoma International Engineering to build new plants and expand existing facilities across seven African countries.