Nigeria signs $1.2 billion deal with Chinese state-owned company to revamp key gas plant
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 aluminium 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. Nigeria’s minister of state for gas announced it Tuesday 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 aluminium 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 several 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 to the streets in recent months to protest against the economic hardship caused by the reforms. In August, at least 20 protesters were shot dead and hundreds of others were arrested.
By Rédaction Africanews
