Dangote Refinery to Commence Local Production of Detergent Raw Material
In a significant development for Nigeria's manufacturing sector, Dangote Refinery has unveiled plans to begin local production of surfactants, a crucial raw material used in detergent manufacturing. This strategic move is expected to reduce the country's reliance on imports, ease foreign exchange pressures, and potentially lower costs for consumers across West Africa.
Strategic Investment in Linear Alkyl Benzene Plant
According to a statement released during a recent news conference, the refinery's chief executive officer, David Bird, confirmed that commercial discussions are nearly finalized for installing a linear alkyl benzene (LAB) plant. This facility will produce surfactants, which are essential components responsible for the foaming action in detergents used for household cleaning, laundry, and personal hygiene products.
Bird emphasized that Dangote Refinery evaluates investment opportunities based on population-driven demand, noting that with Nigeria's large population and the broader West African market, products like detergents should not be considered luxury items. He stated, "I am very pleased today to announce that we have been in deep discussions with a licenser and are just about to finalise the commercial terms for installing a linear alkyl benzene plant."
Reducing Import Dependence and Foreign Exchange Pressure
The local production of surfactants represents a critical step in Nigeria's import substitution strategy. Currently, 100 percent of detergents consumed across West Africa rely entirely on imported surfactants, creating significant foreign exchange demand and increasing costs for manufacturers.
Bird explained that this initiative could ease pressure on Nigeria's foreign exchange reserves, lower input costs for local manufacturers, and potentially reduce retail prices of detergents and related cleaning products. He described the project as another reinvestment aimed at improving economic sustainability and self-sufficiency in Nigeria and the West African sub-region.
Regional Implications and Cameroon's Interest
In a related development, Cameroon's state-owned oil refinery, Sonara, has initiated talks with Dangote Group seeking funding and supply solutions to revive its operations. A Sonara delegation led by CEO El Hadj Bako Harouna visited Lagos between January 20 and 23, 2026, to engage with Dangote Refinery management.
The discussions focused on possible financial and technical assistance, as Sonara works to stabilize operations and return to active refining. The Cameroonian refiner indicated the engagement aimed to explore long-term technical and economic cooperation that could strengthen Cameroon's fuel security, meet local demand, and support the country's energy independence objectives.
Broader Context of Dangote Refinery Operations
This announcement comes as Dangote Refinery continues to reshape Nigeria's petroleum landscape. The refinery recently reopened gantry operations after a brief suspension due to price surges, implementing stricter supply discipline in the downstream petroleum market. Marketers must now reconcile accounts as ex-depot petrol prices have risen by N100 per litre, affecting nationwide pump prices.
The surfactant production initiative aligns with Dangote's broader strategy of enhancing Nigeria's industrial capacity and reducing import dependence across multiple sectors. As Bird noted, "fuels, lubricants, and detergents are essential products that should not be considered luxury items, given the size of Nigeria's population and that of the wider West African region."
This development represents a significant step toward strengthening Nigeria's manufacturing sector and promoting regional economic integration through reduced import dependence and enhanced local production capabilities.
