Dangote Industries Limited has taken a bold step in expanding Nigeria’s petrochemical landscape after signing a memorandum of understanding (MoU) with Japan’s Mitsui Chemicals for joint petrochemical production.
The landmark deal is expected to strengthen Nigeria’s manufacturing base, reduce dependency on imports, and position the country as a hub for value-added industrial production in Africa.
The partnership was formalized during the Tokyo International Conference on African Development (TICAD) in Yokohama, Japan, and facilitated by consulting firm AAIC Holdings, which has been working to deepen Japanese corporate participation in Africa.
Under the MoU, Mitsui Chemicals will provide advanced technology for the production of resins, polymers, and fertilizers, while Dangote Industries will supply feedstock from its 650,000 barrels-per-day refinery in Lagos.
The collaboration allows Dangote to fully utilize raw materials from its refining operations, creating a new pipeline for petrochemical production that will enhance industrial output across the continent.
Mitsui Chemicals, which already operates a successful resin and PET production joint venture with Siam Cement Group in Thailand, said the partnership aims to contribute to “strengthening living foundations and developing regional industries in African countries, including Nigeria.”
Industry experts say the agreement could be a turning point for Nigeria’s petrochemical sector.
By producing locally, the partnership will help reduce Nigeria’s heavy reliance on imported polymers and plastics while creating thousands of jobs across the value chain.
Dangote’s 900,000 mt/year polypropylene plant, commissioned in March 2025, has already begun displacing some of the country’s annual 250,000 mt imports of plastics.
With Mitsui’s technical expertise, analysts believe Nigeria can expand production to not only meet local demand but also export to neighboring West African countries and beyond.
The deal also builds on Dangote’s recent expansion drive. In May 2025, the company signed an exclusive partnership with global distributor Vinmar to market its products internationally.
The refinery complex currently has the capacity to produce 77 grades of polymer, a figure expected to grow with Mitsui’s involvement.
Speaking on the development, business analysts described the MoU as a strong demonstration of Africa’s readiness to attract foreign investment into value-added industries.
“This deal aligns with the Federal Government’s push for industrialization and reduced import dependency.
By processing raw materials locally, Nigeria retains more value in-country, saves foreign exchange, and enhances its export competitiveness,” an energy analyst noted.
Dangote Industries has also been working to expand its footprint across Africa.
The company recently secured a $4 billion loan, led by Afreximbank, to fund refinery expansions, and enlisted former Shell executive David Bird as the refinery’s first Chief Executive Officer.
Plans are already in motion to increase refining capacity to 700,000 barrels per day and to establish satellite storage hubs in countries like Namibia.
For Japan, the partnership marks an important step toward greater engagement with Africa’s industrial sector.
Mitsui Chemicals has expressed optimism that its technology transfer will not only enhance production efficiency but also foster skills development and innovation within Nigeria’s workforce.
The collaboration also comes at a time when African economies are seeking to maximize the benefits of the African Continental Free Trade Area (AfCFTA), which is designed to boost intra-African trade and industrial integration.
Experts believe the Dangote-Mitsui MoU could serve as a model for future Africa-Asia industrial partnerships.
With Dangote Industries bringing scale and local infrastructure, and Mitsui Chemicals contributing global expertise and advanced technology, the MoU represents a win-win for Nigeria’s economy and Africa’s broader industrial ambitions.
The agreement signals a new era for the continent’s petrochemical industry—one that could transform Nigeria into a regional hub for plastics, resins, and fertilizer production, while also reinforcing its role as an industrial powerhouse in Africa.