Japan’s Mitsui Chemicals will partner with Nigerian conglomerate Dangote Group to explore joint production of petrochemicals in Nigeria, according to a memorandum of understanding set to be signed at this week’s Tokyo International Conference on African Development in Yokohama, Nikkei reported.
The partnership pairs Mitsui Chemicals, one of Japan’s leading chemical companies with business interests across Asia, Europe and the United States, with Dangote Group, one of Africa’s leading industrial conglomerates with an annual group turnover of US$9.6 billion. Dangote operates a 650,000 barrels per day integrated refinery in Lagos, Africa’s biggest oil refinery and the world’s biggest single-train facility.
The collaboration comes as Nigeria grapples with longstanding challenges in its petrochemical sector. Despite being Africa’s largest crude oil producer, virtually all chemical and petrochemical products used in Nigeria’s oil and gas industry are currently imported. Nigeria’s existing refineries have operated at just 15-25% capacity utilization over the past 15-20 years, forcing the country to import 70-80% of its petroleum products.
While technology transfer agreements often promise local development benefits, execution remains critical given Nigeria’s mixed track record with industrial projects. The venture’s success will likely depend on navigating regulatory complexities and infrastructure constraints that have historically hampered the country’s petrochemical ambitions.
The timing coincides with TICAD 9, running August 20-22 in Yokohama under the theme “Co-create innovative solutions”.
