Nigeria has entered a $1.2 billion agreement with China’s state-owned China National Chemical Engineering Corporation (CNCEC) to rejuvenate a key gas processing facility, a move that could propel the African nation into a prominent position in the global aluminium market, Africanews reports.
The deal, involving CNCEC and Nigeria’s BFI Group—an influential investor in the Aluminum Smelter Company of Nigeria—will breathe new life into a 135 million standard cubic feet gas processing plant at the smelter. Minister of State for Gas, Ekperikpe Ekpo, shared the news on social platform X, describing the investment as a vital step in restoring the smelter’s potential. Ekpo expressed confidence that this partnership will set Nigeria on a path toward becoming a “leading aluminium producer for both domestic and international markets.”
Nigeria’s economic cooperation with China deepened in 2016, following a visit by then-President Muhammadu Buhari to Chinese President Xi Jinping, resulting in several bilateral agreements. Since then, Chinese companies have been heavily involved in infrastructure development across Nigeria, Africa’s most populous nation.
Despite Nigeria’s position as one of Africa’s largest oil producers, it contends with high poverty and hunger rates. President Bola Tinubu, in office since last year, has initiated reforms to curb government spending and attract foreign investment. However, these measures come amid significant economic challenges, including a 28-year-high inflation rate and a record low for Nigeria’s currency, the naira, against the dollar.
The economic reforms have sparked protests in recent months. In August, demonstrations against the rising cost of living resulted in the deaths of at least 20 protesters and the arrest of hundreds. Nevertheless, the Nigerian government remains hopeful that projects like the CNCEC investment will foster economic stability and growth in the long term.
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