Dangote Refinery targets $85.6bn Africa detergent chemicals market

Dangote Refinery has targeted Africa’s detergent chemicals landscape, with a move to capture access to an estimated $85.6 billion market with an ambitious Linear Alkyl Benzene (LAB) project expected within the next 30 months.

LAB is a crucial biodegradable organic compound primarily used to produce Linear Alkyl Benzene Sulfonic Acid (LABSA), the main surface active agent in household detergents and industrial cleaners.

The refinery, which has already shaken up Nigeria’s $426 million polypropylene import market, said it plans to enter the LAB market as a major supplier of key detergent inputs across the African continent.

“The Africa Detergent Chemicals Market is projected to grow from $58.9 billion in 2025 to $85.6 billion by 2031, at a Compound Annual Growth Rate (CAGR) of 6.4 percent,” stated Mobility Foresights, an Indian-based research and transaction advisory company.

Data from industry trackers showed that Nigeria imported $43.8 million worth of Linear Alkyl Benzene in the first quarter of 2025, indicating a 5,728 percent increase from the fourth quarter of 2024. This development revealed a rising appetite for the refined petroleum product by companies in Nigeria.

Strategic expansion into detergent chemicals

Aliko Dangote, president of the Dangote Group, said the planned plant would have a production capacity sufficient to meet demand across Africa, exceeding the output of existing facilities on the continent.

“That raw material for detergent will be sufficient for the entire African continent. It’s 400,000 tonnes, which we don’t have,” he said.

Africa currently has only two LAB facilities, a 100,000-tonne-per-year plant in Skikda, Algeria, operated by Sonatrach, and the Egyptian Linear Alkyl Benzene (ELAB) facility, also producing 100,000 tonnes per year.

LAB is produced by alkylating benzene with long-chain olefins, typically in the C10–C13 range, and is a foundational ingredient in household and industrial detergents worldwide.

Dangote’s facility will expand Nigeria’s existing petrochemical footprint beyond fuel and fertiliser, leveraging the integrated refinery platform to produce basic and specialty chemicals that have, until now, been predominantly imported.

Tapping a $59bn market

Recent analysis by Mobility Foresights showed that growth in the market is being driven by increasing urbanisation, rising hygiene awareness, and demand for both household cleaning products and industrial sanitation.

“As incomes rise and consumer behaviours shift toward branded and performance-oriented products, demand for high-quality detergent chemicals follows suit,” the company stated.

This projected expansion presents an enormous opportunity for upstream producers of LAB and other surfactant precursors. Africa currently imports nearly all raw materials for detergents, underscoring the strategic importance of local production.

Reducing import dependence

Dangote’s entry also has compelling implications for foreign exchange and import substitution. At present, many African detergent manufacturers import LAB or blended surfactant intermediates from Asia-Pacific producers, contributing to foreign currency outflows.

African producers of detergents and personal care products import LAB, Linear Alkylbenzene Sulfonic Acid (LABSA), and other blended surfactant intermediates primarily from Asia, the Middle East, and Europe, with significant intra-regional sourcing from South Africa.

Due to the high import dependency, these materials often flow from major global petrochemical hubs into key African markets like Nigeria, Kenya, and Egypt. This is according to Elchemy, a chemical engineering company.

According to industry sources, imports of soap and detergents into Africa were valued at roughly $1 billion in 2024, with annual volumes in the hundreds of thousands of tonnes.

By producing key chemical feedstocks locally, Dangote aims to reduce import reliance, improve supply chain resilience, and offer more competitive raw material pricing for manufacturers across Africa.

“Here is not a refinery, it’s an industrial hub,” Dangote said, highlighting the broader platform that will support not just fuels but petrochemicals and chemical intermediates. “And that’s why we are doing a Linear Alkyl Benzene plant, which is a raw material for detergents.”

Industrial and Economic Impact

Industry analysts said local LAB production could create a ripple effect across Africa’s detergent and FMCG sectors. By lowering costs for surfactants, which often account for a significant share of detergent formulations, local producers can improve margin profiles and competitiveness.

It also aligns with broader trends of industrial localisation and enhanced manufacturing participation across Africa, which has historically depended on imports for many basic chemical inputs.

David Bird, CEO of Dangote Refinery, has emphasised that the company is finalising commercial terms with technology licensors for the LAB plant, signalling progress toward full implementation.

Challenges and Opportunities

While the market potential is large, success will hinge on consistent feedstock availability, reliable downstream demand, and alignment with regional trade frameworks such as the African Continental Free Trade Area (AfCFTA).

Logistics and infrastructure remain critical, as does the broader macroeconomic environment. However, Dangote’s integrated approach, combining refinery, petrochemicals, and distribution capabilities, may mitigate some traditional barriers to chemical sector growth in Africa.(BusinessDay)