ABUJA, Nigeria — Nigeria has finalized a substantial agreement worth $1.2 billion with a Chinese company to enhance a gas processing facility, a development that officials believe could position the country as a key player in aluminum manufacturing.

The collaboration involves the Chinese state-owned enterprise CNCEC and the BFI Group, known for being a significant investor in the Aluminum Smelter Company of Nigeria. The initiative aims to rejuvenate the gas processing plant at the smelter, capable of handling 135 million standard cubic feet of gas. This announcement was made by Nigeria’s Minister of State for Gas through a statement shared on the social platform X.
Minister Ekperikpe Ekpo expressed enthusiasm regarding the “substantial investment,” highlighting its potential to steer the smelter towards reclaiming its status as a top aluminum producer for both local and international markets.
Since a visit from former President Muhammadu Buhari to Chinese President Xi Jinping in 2016, the economic ties between Nigeria and China have strengthened significantly. This relationship has led to numerous agreements, resulting in the engagement of Chinese companies to develop railways and bolster infrastructure across the most populous nation in Africa.
While Nigeria is recognized as a leading oil producer in Africa, it continues to grapple with some of the highest levels of poverty and hunger globally. President Bola Tinubu, who assumed office last year, has commenced reforms aimed at curtailing government expenditure and drawing foreign investments. Nonetheless, the country is still confronting serious economic hurdles, evidenced by a staggering inflation rate at a 28-year peak, coupled with the naira reaching unprecedented lows against the U.S. dollar.
In recent months, widespread protests have erupted in Nigeria as citizens voice their dissatisfaction with the economic challenges they attribute to the government’s reforms. In a particularly tragic incident in August, at least 20 demonstrators lost their lives, and many more were apprehended during these protests.