The Director-General of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadir has said that the production of polypropylene by the Dangote refinery can revive Nigeria’s comatose textile industry.
Earlier this month, it was reported that the Dangote Refinery had commenced production of polypropylene, with a capacity to produce 830,000 metric tonnes per year from two plants within the refinery.
Ajayi-Kadir, while speaking in an interview on Channels TV’s Business Incorporated, highlighted the impact of the development on the manufacturing sector.
He described it as “a welcome development”, noting that it meets more than local demands, which according to him currently stands at around 250,000 metric tonnes per year.
He said the development would end the importation of polypropylene and help Nigeria save over 267 million US Dollars.
Impact on textile industry
Ajayi-Kadir stressed that the production of polypropylene in Nigeria can revive the textile industry which has collapsed as a result of poor investment and other business challenges.
The textile industry relies on polypropylene for manufacturing ropes, carpets, and nonwoven fabrics, such as those used in disposable hygiene products like diapers and sanitary pads, among other fabrics.
- The MAN DG explained that the textile industry used to be vibrant years ago, “employing more than 25,000 workers aged between 18 and 40 years.”
- However, it collapsed as many of the companies in the industry fled the country. He said the Dangote refinery is promising a resuscitation of the industry.
“So all of this has collapsed and we have seen the global trend of the textile industry relying on the petrochemical industry.
“You can imagine what kind of boost this is going to bring to the sector and that it is now available locally and does not require that we continue to look for foreign exchange to be able to meet our demands, it is actually a cherry news.”
- He urged the government to promote more investment in the manufacturing sector to build on the positives that the local production of polypropylene will bring.
“I believe that what we should then be looking forward to is the government’s deliberate efforts to incentivize more investment in that sector and looking for support that will allow us to patronize what is made in Nigeria. We are able to earn the respect for the patronage of made-in Nigerian products in terms of price and quality of delivery.”
90% of Nigeria’s polypropylene demand imported
The MAN DG stated that 90 percent of Nigeria’s demand for polypropylene is imported, with the country ranking 28th in the world’s demand for the product which serves as a raw material in various manufacturing subsectors.
“Before now, about 90% of our needs are imported into the country to the extent that Nigeria accounts for, I mean Nigeria ranks 28th or so in the world’s demand for polypropylene and polypropylene stands at the 18th position in items that are imported into the country.
“So for us in the manufacturing sector, it is a welcome development. It actually more than provides for the 250,000 metric tons that is our national demand which has been grossly non-available in the country. So you can imagine what this is going to do to the sectors that have been impacted, the textile industry, the plastic industry, the furniture industry.”
With the Dangote refinery making large production of polypropylene, Nigeria will become a net exporter of the product, and it will reduce pressure on foreign exchange.
Ajayi-Kadir noted that the product is currently imported from Saudi Arabia, South Africa, South Korea, China, and India.
