Dangote Petroleum Refinery Announce Plans to Begin Producing Surfactants

Dangote Petroleum Refinery has announced plans to begin producing surfactants, key raw materials used in detergent manufacturing, marking a major step toward import substitution and local industrialisation.

Speaking at a press conference on Wednesday, David Bird, Chief Executive Officer of Dangote Refinery, said the company has finalised commercial terms to install a Linear Alkyl Benzene (LAB) plant, which will make the active ingredient that gives detergents their cleaning and foaming properties. LAB is essential for liquid and powder detergents, household cleaners, and personal hygiene products.

“We are just about to finalise commercial terms for installing the plant,” Bird said, referring to the refinery’s surfactant production project.

Why It Matters for Local Manufacturing

Surfactants and LAB are currently imported at significant cost, as Nigeria and many West African countries lack large-scale domestic production. By making these materials locally, the Dangote facility aims to:

• Reduce reliance on imported detergent inputs;
• Lower production costs for local manufacturers of cleaning and hygiene products;
• Boost competitiveness of Nigerian consumer goods;
• Spur growth in related industries such as household products, chemicals, and packaging.

Surfactants are widely used in household cleaning, garment care and personal hygiene products, and their local production could strengthen value chains in Nigeria’s chemical and manufacturing sectors.

Part of Broader Industrial Strategy

The move builds on Dangote Refinery’s existing downstream chemicals strategy, which includes facilities that already produce petrochemicals such as polypropylene and base oils, industrial inputs for plastics and lubricants, and marks an expansion into higher-value, consumer-linked products.

Industry analysts say local production of detergent inputs like surfactants could stimulate downstream MSME growth, enabling small and medium enterprises in soap, detergent and cleaning product manufacturing to access locally made feedstock at lower cost, improving margins and competitiveness.

Nigeria and the wider West African region import most of their detergent raw materials, incurring significant foreign exchange outflows. Local surfactant production could help retain value within the domestic economy, support export-oriented consumer goods companies, and strengthen supply-chain resilience for local manufacturers.

-MSMEAfrica