Nigeria Signs $1.2 Billion Deal with Chinese State-owned Company to Revamp Key Gas Plant

By DYEPKAZAH SHIBAYAN

12:19 PM EST, November 13, 2024

ABUJA, Nigeria (AP) — Nigeria has inked a $1.2 billion deal with a Chinese firm to revitalize a gas processing facility, a move that officials say could propel the African country to a leading position in aluminum production.

The deal between the Chinese state-owned CNCEC and the BFI Group, a major investor in the Aluminum Smelter Company of Nigeria, is expected to revive the 135 million standard cubic feet gas processing facility plant at the smelter. It was announced Tuesday by Nigeria’s minister of state for gas via a post on the social platform X.

Minister of State for Gas Ekperikpe Ekpo expressed optimism about the “significant investment,” stating that it would position the smelter “back on the path to becoming a leading aluminum producer for both domestic and international markets.”

Nigeria and China’s economic relationship deepened in 2016, when the administration of former President Muhammadu Buhari visited Chinese President Xi Jinping and signed a number of agreements. Since then, Chinese companies have been contracted to build railways and provide infrastructure in Africa’s most populous country.

Despite being a major oil producer in Africa, Nigeria has some of the world’s highest poverty and hunger levels.

President Bola Tinubu, who took office last year, initiated reforms to reduce government spending and attract foreign investment. However, the country continues to face economic challenges, including a 28-year high inflation rate. Its currency, the naira, is at record lows against the dollar.

Many Nigerians have taken the streets in recent months to protest against the economic hardship they say is caused by the reforms. In August, at least 20 protesters were shot dead and hundreds of others were arrested.