The Manufacturers Association of Nigeria has urged the Federal Government to guarantee steady crude oil supply to refineries and petrochemical facilities, and to significantly scale up investment in gas infrastructure, following the Dangote Petroleum Refinery’s agreement with Honeywell UOP to expand petrochemical output.

Commenting, MAN Director-General Segun Ajayi-Kadir said the partnership would bolster Nigeria’s petrochemical sector, deepen the domestic value enhance the country’s prospects of becoming a net exporter of petrochemical products.

“To sustain the growth of the petrochemical sector, government is to ensure consistent supply of crude to refineries and petrochemical plants, invest massively on gas supply infrastructure like pipelines and processing plants, promote tax incentives to attract more investors, provide infrastructural facilities like efficient ports, adequate power supply and logistics to aid production and encourage the patronage of Made in Nigeria products by restricting importation of locally produced inputs,” Ajayi-Kadir said.

He described the Dangote-Honeywell partnership as a significant boost for Nigeria’s chemical, packaging, and plastics industries, noting that it would enhance local production capacity and support industrial growth.

“The Dangote/Honeywell deal to expand production and produce higher value petrochemicals is a good initiative to boost the performance of the chemical, packaging, and plastics industries,” Ajayi-Kadir said.

“The major aim of the initiative is to increase the production of propylene, which is a key input for the production of plastics, packaging, and industrial goods, to 750,000 tonnes/year and production of linear alkylbenzene, a critical input for the production of detergents and cleaning products.”

Ajayi-Kadir added that the association has consistently championed the development of primary industries that can provide essential raw materials to secondary manufacturers, strengthening the overall industrial value chain.

“The association is impressed with the development because over the years, our requests have been the development of primary industries that will provide input for secondary industries, thereby boosting the performance of the sector,” Ajayi-Kadir said.

“So, the affected subsectors will be able to source the major raw materials locally with only a few inputs and machinery to import. This will reduce the cost of production and prices of finished products in the industry.”

The MAN DG further stated that the project would drive growth in downstream industries, including packaging, construction materials, consumer goods, and automotive components, by improving access to locally sourced inputs.

“The deal will lead to the development of different products and downstream industries with consequent effect on job creation, exportation, and growth of SMEs. Availability of raw materials locally for production in those industries will reduce the cost of production and prices of finished products,” Ajayi-Kadir said.

He added that increased refining and petrochemical output would unlock export opportunities for Nigeria. According to him, expanding refinery and propylene capacity would boost production beyond domestic demand, positioning the country as a net exporter of petrochemical products and increasing export earnings.

Ajayi-Kadir also noted that the collaboration would raise technological standards in the sector while contributing to job creation across the value chain.

“The collaboration between the two companies involves engaging in advanced technology to ensure efficiency, reliability and improved standards, making the refinery one of the best in the world,” he said.

“The complex and other emanating companies and businesses will generate thousands of direct and indirect jobs, reducing the rate of unemployment in Nigeria. The export potential in the industries will also have a positive impact on the economy.”